If you have a new baby on the way, you are most likely making a lot of decisions regarding your future lifestyle and how you will accommodate and care for your child. One thing you should not forget is to assess your current insurance coverage. Having a child can change the way you approach every type of insurance, including life insurance, disability insurance, and your car insurance. While having a child may not immediately change your homeowners insurance premiums, there are some basic changes you may want to consider.
Increase Your Coverage Limits to Include the New Baby Gear You Purchased
One aspect of your homeowner's insurance is content coverage. This is the limit that will cover the replacement of lost or damaged items in your home such as furniture and electronics. When you add a nursery to your home, you can spend a considerable amount of money on nursery furniture, baby monitors, and strollers. It is important to make sure that these new belongings will not put you over your current coverage limits. If they do, you should consider expanding your coverage with an additional rider.
If your current contents insurance requires you to file a home inventory with your insurance company, you should do so as soon as you have your nursery set up and the bulk of your baby items purchased.
Add Accidental Damage Coverage If It Is Not Already Active
Most basic insurance policies may cover accidental damage to basic electronics, such as a television or radio, but will not cover accidents that occur to other furniture and areas of your home. As your baby grows into a toddler, it is much more likely that they will damage your belongings. It is important that you include accidental damage coverage for those times when your child breaks a valuable item or creates a problem that cannot be fixed with simple, low-cost repairs.
Combining Insurance Policies for Extra Savings
Most families choose to get life insurance and disability insurance for the first time when they have children. You may also notice that your car insurance premiums change with the addition of a child. This makes it an excellent time to try combining policies for the best rate. See if you can combine your homeowner's insurance with 2–3 other types of insurance for the greatest discounts.
It is important to have your insurance planned and in place before your child is born. Talk with an insurance agent in your area for the best deals and types of home insurance that may apply to your specific situation.