Think insurance is something you can "set and forget"? Not so fast, says Kim Holtorff, founder of Insurance Planning Associates in Omaha. "Parents have a lot of life changes, and these mean changes to your plan," he explains. You already know to update when you buy a house, switch jobs, or have a child. But the following merit it, too:
- Changing rentals Non-home-owners should have renter's insurance, which can be as little as $12 a month. Update it every time you pick up stakes.
- Getting a second ride You know you'll need vehicle insurance. But having more wheels argues for getting an umbrella policy, which fills in for liabilities your other policies don't cover.
- Contemplating divorce Check all your policies before proceedings begin, because you may be losing coverage you'll have to make up once you're on your own. After the dust set-tles, make sure to incorporate your child-custody agreement.
- Shacking up If you're under the same roof but unmarried, beware: Some policies exclude anyone not biologically related to you unless you specifically add them.