3 Updates You Should Make To Your Insurance When Having a Baby

If you’ve recently given birth (or are currently expecting) - then congratulations! We know how exciting and stressful this time can be for any parent, and we just hope your sleep schedule isn’t too out of whack. 

With all the questions you currently have flying through your head, whether or not your need to update your insurance policy is likely not your topmost priority. Still, how you can best protect your family is likely at the top of the list, making it important for parents to know about what changes to their personal insurance policies they should make after having a newborn. 

At Berry insurance, we want to help parents any way we can. And while we unfortunately aren’t available to babysit, we can provide advice on how to get the best coverage out of your insurance to protect your growing family. The following are areas you should consider adding or updating on your personal policies after having a newborn. 

1. Homeowners insurance

As having a baby will be a big change for your homelife, it can be a good idea to update your insurance agent or provider about the new member of the household. While having a child won’t outright affect your homeowners policy, you may want to raise the limits of certain coverages after having a newborn. These include: 

Dwelling coverage:  

Your dwelling coverage is the part of your homeowners insurance policy that covers the actual structure of your home if it is damaged by any covered exposures. 

So, If you undertake any major renovations to your home to prepare for the arrival of your new family member, such as adding a nursery or new bathroom, you may wish to contact your agent or provider to increase your dwelling coverage. 

Personal liability: 

Newborns add a new element of risk to your home making it important to ensure your family and home are well protected. Because of this, you may wish to increase your personal liability coverage, which covers the medical payments for claims of bodily injury and property damage to others. 

So, for example, if a guest over on a playdate brings their child and they are injured while on your property, your personal liability coverage would help to cover the costs of their medical expenses and any legal fees/settlements. Speaking with your insurance agent or provider can help determine if your current policy needs to be updated for increased personal liability insurance. 

To know more about when you should be updating your personal insurance policy, check out this guide: Why You Should Review Your Personal Insurance Annually. 

2. Life insurance

As you take your first steps in becoming a parent and enter a new chapter of your life, it can be the perfect time to make sure you purchase life insurance to create a financial safety net for your family. 

Life insurance provides financial security to the family of the policyholder if they were to pass away. This can provide coverage for funeral costs, debt payments, continuation of the late policyholder’s income, college savings for children, and other final expenses. 

There are two main types of life insurance: 

• Term: This type of life insurance provides coverage for a certain time period, usually 10 to 30 years. If the policyholder passes away during the term, their beneficiaries receive death benefit as payment, but the policy loses all value once the term ends. 
• Permanent: This coverage provides lifetime protection including both a death benefit, being compensation for the beneficiary once the insured passes, and a cash benefit, which is a savings account for the insured while they are still alive. 

Becoming a parent is one of the best times to get life insurance, as you are still young and now have dependents under your care. However, we would stress getting the policy before your child is born and not late into the pregnancy or after their birth, as health changes in the last three months of pregnancy may be reason to deny life insurance or raise the premium for the policy. 

To know more about when you should consider getting a life insurance policy, read this article: When are the Best (and Worst) Times to get Life Insurance?

3. Umbrella insurance

For added protection to your family, consider adding umbrella insurance coverage. Sometimes known as excess liability or personal liability, umbrella insurance supplements your existing liability coverages, such as auto, homeowners, renters, and condo insurance - offering an extension of your existing coverage. 

Umbrella insurance covers the costs of damages or legal defense arising from incidents of property damage or injury when you are found responsible. This coverage kicks in when other forms of insurance (auto, home, renters, condo) have already been exhausted. 

As mentioned above, having guests injured on your property can lead to expensive medical and legal costs. Umbrella insurance can help to provide your family with peace of mind that you will receive full coverage if anything were to go wrong during your next baby shower, play date, or babysitter that gets injured on your property. 

The safety net provided from umbrella insurance is actually quite affordable and is the perfect low priced way to add protection to your policies. Don’t believe us just yet? Check out our breakdown of the cost of umbrella insurance in Massachusetts. 

Protecting your new family

Becoming a new parent can be scary for even the most prepared. But now that you know the different ways you can update your policies to increase your protection, you can have one less thing to worry about. 

Planning an event for your new bundle of joy? Whether it be a baby shower for expecting mothers or a celebration of their first birthday, having guests over your home can expose you to many potential risks. To learn about coverage for large social gatherings and whether or not it’s right for you, read this article: Do I Need Special Event Insurance? (Weddings, Graduation Parties, Baby Showers, Reunions, etc.).