(ROTARIANS HEAR INSURANCE ADVICE)
GRINNELL, Iowa (Feb. 23) – Now is a good time to review your insurance coverage's, said Brent Nickel, owner of a State Farm Insurance agency in Grinnell who spoke at the Rotary Club regular meeting held Tues., Feb. 22.
“Be sure you are happy with your insurance, that it covers what you want it to cover,” he advised. “Always look at the details to make sure there are no surprises.”
He warned that insurance premiums will increase in 2022 due mainly to inflation. According to Nickel, many insurance companies gave back some money to customers and/or reduced auto premiums in 2020 because many people were not driving as Covid-19 spread across the US. However, with more people hitting the road in 2021, premiums will need to readjust to properly match exposure.
With regards to home insurance, Nickel advised that homeowners should make sure that their insurance covers the home the way they intend and understand the policy limits and how these limits may affect any potential claims payments. “Always look at the replacement cost of a home,” he said. “A home that that might have cost $100,000 to rebuild a 2-3 years ago may very well exceed that amount substantially today.” He added most insurance companies and/or your agent should be able to assist in determining an estimated cost to rebuild your home.
Another advice to homeowners is to ask if the insurance on their home is adjusting to inflation.
Finally, he advised that everyone should consider a personal liability umbrella policy. Generally, these policies are offered beginning at $1,000,000 liability coverage and can be tailored for your specific needs. This includes even younger adults who may not have much by way of current assets but do have the potential for substantial future earnings that could be subject to garnishment in some states and circumstances. One never knows what might happen for which a person could be found liable, he added.
Nickel is a member of the Grinnell Rotary Club and served as president in 2020-21.
The Grinnell Rotary Club meets every Tuesday at 6 p.m. at West Side Dining on 6th Ave., Grinnell.