Bringing a child into the world is a feeling unlike any other. Adding a baby to the family is a major change in your day-to-day life as well as your financial situation. You may be prepared for, or at least aware of, the daily life changes such as dirty diapers or sleepless nights. Additionally, you may have begun to consider how you will save for education or other expenses that come with a new baby. As you prepare for the arrival of your baby, consider these important insurance changes in addition to the other changes taking place in your life.
Auto Insurance Changes
Some new parents may wonder what happens to their auto insurance rates after they have a baby. While bringing a new life into the world may not directly affect your insurance rates, it may, however, be a catalyst to lowering your rates in the long run. Expectant mothers and new parents are usually worried about the safety of their bundles of joy. This tends to lead to safer driving both during pregnancy and while the child is young. Many auto insurance policies offer discounts for safe drivers.
If you’ve been driving a sleek sports car or exotic vehicle before having a baby, you may have been paying more in auto insurance premiums. Switching to a minivan, sedan or another traditional family vehicle can help lower your car insurance costs. A “family car” may promote safer driving habits. Additionally, many of these vehicles also have higher safety ratings.
You may also consider changing the coverage of your auto policy. Adding optional coverages such as roadside assistance to your car insurance can help keep you and your family safe. Roadside assistance can provide services like fuel delivery and flat tire changes if something were to happen when you are out and about with your baby.
Update Your Renters Insurance
Before you bring your new baby home to an apartment or house you are renting, you may want to make some changes to your renters insurance. If you previously did not have renters insurance coverage, now is the perfect time to purchase a policy. Renters insurance protects your belongings from disasters like theft or a fire. A renters policy may also provide limited coverage for property stored in a storage locker or unit. This is a great benefit if you move some of your belongings into storage to make room for the baby’s furniture. Should the storage locker or unit be broken into, you may have some protection against the loss.
Be sure to double check how much coverage is offered by your renters insurance policy, however. Expensive or unique items will likely be excluded or subject to limitations and you may need to purchase additional coverage to ensure they are covered for their full replacement cost. For example, jewelry and antiques that may be gifted to you as a keepsake for your new baby, such as a grandmother’s diamond ring or grandfather’s gold pocket watch, will likely be subject to a limitation in the policy and may require additional, but optional coverage.
Changes to Homeowners Insurance
Many new parents seek to update parts of their home or move to a new home to accommodate their growing family. If you’ve had a baby and are planning to upgrade to a larger house, consider the insurance needs of your new home. When you buy a home, you will want to secure homeowners insurance during the closing process. Similar to renters insurance, ensure your homeowners insurance has additional protection for expensive items. Remember to add all of the new baby equipment such as the crib, changing table and stroller to your home inventory list.
If you already own a home and are planning to make upgrades for your new baby, it’s important to contact us to ensure you have enough coverage. Many families choose to add an extra bedroom or bathroom to their homes to make room for additional family members. This can change the rebuilding cost of your home, and you may need additional coverage.
Making a home as safe as possible is a priority for many new parents. One way to increase the general safety of your home is through smart home upgrades. Video doorbells and security cameras keep your home secure by allowing you to see who is outside before you unlock the door. You may also receive a discount on your homeowners insurance for installing burglar alarms.
Life Insurance and a New Baby
When you bring home a new baby, getting life insurance or expanding your current policy is one of the first insurance changes you should make. This will help protect your family’s wellbeing should something happen to you. Your employer may offer some life insurance protection, but it may not be sufficient. Consider purchasing a new policy just for the benefit of your new child. It’s important to speak with a life insurance agent to find out what your levels of coverage your family may need.
Insurance Changes with a Baby on the Way
A new baby means your family is growing and many changes are coming. Though this is an exciting time with many major changes, don’t forget the importance of examining your insurance coverage. Learn more about your renters, homeowners and auto insurance options and to find out what discounts you may qualify for by calling us at 1-800-640-2920.