"Am I Underinsured?" A Minnesota Coverage Review Checklist

Minnesota Coverage Review Checklist

Regular coverage reviews help ensure you're not underinsured. Use this checklist to evaluate your insurance protection.

Homeowners Insurance Checklist

Dwelling Coverage

• Adequate to rebuild: Coverage equals current rebuilding cost (not market value)
• Updated recently: Reviewed within last 2-3 years
• Construction cost increases: Accounted for inflation and material cost increases
• Local building codes: Coverage accounts for code upgrade requirements
• Square footage accurate: Policy reflects actual home size

Personal Property

• Adequate limits: Coverage equals value of all belongings
• Replacement cost: Have replacement cost, not actual cash value
• High-value items scheduled: Jewelry, art, collectibles properly covered
• Home inventory: Have current inventory of belongings
• Special limits reviewed: Understand sub-limits for certain items

Liability Coverage

• At least $300,000: Minimum recommended, consider $500,000+
• Umbrella considered: Evaluate need for additional liability
• Dog coverage: Understand breed restrictions or exclusions
• Pool/trampoline: Adequate coverage for attractive nuisances
• Home business: Separate coverage if you work from home

Additional Coverages

• Water backup: Considered for basements/lower levels
• Service line: Evaluated sewer/water line coverage
• Scheduled items: High-value items properly scheduled
• Additional living expenses: Adequate if home becomes uninhabitable

Auto Insurance Checklist

Liability Coverage

• At least $250,000/$500,000: Minimum recommended
• Consider higher: $500,000/$500,000 or more if you have assets
• Bodily injury adequate: Protects against serious injury claims
• Property damage adequate: Covers damage to others' property

Uninsured/Underinsured Motorist

• Equal to liability: Match your liability limits
• Protects you: Covers you if hit by uninsured driver
• Stacking considered: Understand stacking options if available

Physical Damage

• Collision appropriate: Have if vehicle has significant value
• Comprehensive appropriate: Theft, weather, vandalism coverage
• Deductible affordable: Can you afford your deductible?
• Gap insurance: Considered if vehicle is financed/leased

Additional Considerations

• Teen drivers: Adequate coverage for young drivers
• Rental reimbursement: Coverage if your car is in shop
• Roadside assistance: Consider if you want this coverage

Umbrella Insurance Checklist

• Evaluated need: Considered if you have assets to protect
• Adequate limits: $1 million minimum, more if higher net worth
• Underlying requirements: Meet minimum underlying policy limits
• Covers all exposures: Auto, home, rental properties, etc.

Renters Insurance Checklist

• Have coverage: Don't assume landlord's insurance covers you
• Adequate limits: Coverage equals value of belongings
• Replacement cost: Have replacement cost, not ACV
• Liability coverage: At least $300,000 recommended
• Roommate situation: Understand coverage with roommates

Life Changes That Require Review

Major Life Events

• Marriage/divorce: Update beneficiaries and coverage needs
• Children: Increase life insurance, review liability
• Home purchase: New home needs new coverage review
• Job change: Income changes affect coverage needs
• Retirement: Coverage needs may change

Property Changes

• Home improvements: Renovations increase rebuilding cost
• New purchases: Valuable items may need scheduling
• Property additions: Pools, sheds, etc. need coverage
• Home business: May need separate business coverage

Lifestyle Changes

• New drivers: Teen drivers need adequate coverage
• New pets: Understand dog liability coverage
• Rental property: May need landlord insurance
• Vacation home: Separate coverage considerations

Minnesota-Specific Considerations

Weather Risks

• Wind/hail deductible: Understand separate deductibles
• Freeze damage: Coverage and prevention understood
• Water backup: Considered for basements
• Service lines: Evaluated sewer/water line coverage

Property-Specific

• Roof age: Understand how it affects coverage
• Older home: May need additional coverage considerations
• Lake property: Special considerations for cabins
• Rental property: Appropriate landlord coverage

Questions to Ask Your Agent

• When was my last coverage review?
• Are my limits adequate for current rebuilding costs?
• Do I have any coverage gaps?
• Should I consider umbrella insurance?
• Are there discounts I'm missing?
• What coverage changes do you recommend?
• How often should I review my coverage?

Red Flags That Indicate Underinsurance

Home Insurance

• Haven't reviewed in 3+ years: Rebuilding costs have increased
• Coverage based on purchase price: Not current rebuilding cost
• No recent updates: After renovations or improvements
• Low liability limits: Less than $300,000
• No water backup: Have basement but no coverage

Auto Insurance

• State minimum liability: Often insufficient
• No uninsured motorist: Missing important protection
• High-value car, no collision: Risking significant loss
• Teen driver, low limits: Inadequate protection

General

• No umbrella: Have assets but no excess liability
• Haven't reviewed in years: Coverage may be outdated
• Life changes not reflected: Marriage, kids, new home, etc.
• Can't explain your coverage: Don't understand what you have

The Bottom Line

Regular coverage reviews help ensure you're not underinsured. Life changes, property changes, and market changes all affect your insurance needs. Use this checklist annually or when major changes occur to evaluate your coverage and identify gaps.

If you're in Minnesota and want a professional review of your insurance coverage, consider speaking with a licensed insurance professional who can help you evaluate your specific situation and ensure you have adequate protection.