What is meant by updating coverage?
The limits in your insurance policy may have been fine when you purchased the policy. However, your life circumstances may have changed by the time you file a claim, especially if this occurs years after your initial purchase. Generally speaking, the value of money diminishes by half every seven years to ten years. That means seven to ten years from now your policy limits are only going to be worth half of what they are today. Some lines of insurance rectify this situation through COLA . Other policies are silent on the matter and it is up to you to update your policy to include sufficient limits.TIP! In any case, be sure to check your coverages regularly to ensure you are fully protected.
