Baby on Board: Insurance Checkup for New Parents
If you’re about to enter the realm of parenthood, one thing’s for certain: everything in life is about to change.
You’ll trade late nights out for sleepless nights in. You’ll master new skills – like changing diapers and soothing a newborn. And most importantly, you’ll have the responsibility of caring for a new member of your family.
Having your first child is a huge milestone. And like any other major life change, it means it’s a good time to evaluate your insurance needs and make sure you have the right coverage in place.
We know you’ve got a lot to prepare for – and your insurance policies probably aren’t top of mind. So here’s a quick list of things you should consider before bringing home your new baby.
Homeowners Insurance Considerations for New Parents
- Tell your agent about any renovations. As you prepare to bring your baby home, chances are you may have taken on a few extra projects around the house. If you’ve made any major changes to your home – like adding on space for a new nursery or finishing your basement to transform it into a playroom – then you should give your Whitbeck Insurance agent a call.
That’s because home repairs and renovations can increase the value of your home, which should be reflected in the limits on your homeowners policy. This ensures your home will be fully protected in the event of a loss. An insurance professional like an ERIE agent can help you understand choices in limits and deductibles so you get the coverage you need within your budget.
- Update your home inventory. As a new parent, you may be surprised at how much gear you’ll acquire in taking care of your child. And from strollers and cribs to high-tech video monitors and clothing, the potential cost of replacing all those items can add up fast.
As you unpack those gifts from your baby shower, it’s a good time to consider updating your home inventory. By making a record of all the new items in your home, you can streamline the process of replacing them in the event of a covered loss.
- Enhance your protection. Starting a family can bring you a lot of joy. But it also comes with added risk. To make your home a safe place for children of all ages, you may want to consider making some physical changes to baby-proof your home.
To protect you from major accidents, ERIE also offers personal umbrella insurance1. This insurance can give you an extra layer of protection in case something tragic happens on the backyard trampoline or in your swimming pool. For most people, adding an extra $1 million in coverage costs less than $20 a month.
Auto Insurance Considerations for New Parents
- Brush up on car seat safety. As a new parent, learning the ins and outs of child safety seats can get a bit overwhelming. But purchasing the right car seat for your baby – and making sure it’s properly installed in your vehicle – should never be overlooked. To get an overview of car seat safety, check out A Parent’s Guide to Car Seats.
You should also know that if you’re ever in an auto accident, your car seat may need to be replaced. At ERIE, we conduct a thorough review of the vehicle damage and follow National Highway Traffic Safety Administration (NHTSA) guidelines to determine if a car seat may have been damaged. If so, we’ll replace your car seat as part of your insurance claim. For questions about the specifics of car seat replacement, talk to your ERIE claims representative or call your local ERIE agent.
- Evaluate your vehicle’s safety. Nothing will make you think about your car’s safety more than driving home from the hospital with a newborn in tow. Check out our maintenance and repair tips for advice on how to keep your car in tip-top shape.
If your newly acquired parenthood status has you considering a new ride, the Insurance Institute for Highway Safety (IIHS) TOP SAFETY PICKs should be on your short list. As a nonprofit research and education organization, IIHS conducts crash tests to determine which vehicles do the best job of protecting people in the most common kinds of crashes – front, side, rollover and rear. They also evaluate other vehicle safety features, such as headlights and crash avoidance technology.
Life Insurance Considerations for New Parents
- Purchase life insurance for your newborn. Major life changes like getting married or buying a house are often when people think about buying life insurance for the first time – and for good reason. Another major milestone that warrants considering life insurance is the birth of a child.
There’s advantages to purchasing a policy at a young age: lower rates and future insurability. Because insurers price policies based on risk (and young people have a far lower mortality rate than older groups), your rates are generally less expensive if you’re young and healthy. Buying a policy when you’re young and healthy (and adding a Guaranteed Insurability Option rider2) makes it easier for you to buy more coverage in the future. Plus, you’ll have a policy (locked in at a great rate) now, should you ever need it. Buying a life insurance policy for these reasons helped one young woman when she received a life-changing diagnosis.
ERIE also offers Single-Pay Whole Life, which is a great option for grandparents to purchase for their grandchild. For one lump sum payment, a child gets coverage for life.
- Purchase life insurance for yourself. If you haven’t purchased a life policy for yourself yet, there’s no better reason than the birth of your child. A life insurance policy can help provide for your family if anything ever happens to you by covering expenses like funeral arrangements, mortgage payments or college tuition. It can also help replace the income of a parent and avoid potential financial hardship for the family.
- Update your will and beneficiaries. When your child is born, you’ll likely want them to be named as a beneficiary to your estate. To do that, you’ll need to write a will. So whether you’re one of the 60% of Americans without a will, or you just haven’t updated yours in a while, now is a good time to take action.
Updating your will is the perfect time to name a legal guardian for your child and consult an attorney on the best way to set up a trust for your child, if needed.
Unlock Insurance Savings
With a new child on the way, we know your household budget will be undergoing some changes, too. If you’re looking for ways to save on insurance premiums that don’t compromise your coverage, your local ERIE agent can help. Schedule a personalized coverage review today to learn about the insurance discounts you may be eligible for.
When you work with an experienced agent in your community, you’ll get coverage that fits your life and protects all that matters most to you. Get the insurance you need – and nothing you don’t – from an ERIE agent.
1The insurance products described in this ad are not offered in all states and may change at any time. The policy contains the specific details of the terms, conditions, limitations and exclusions that apply. Talk to your Agent for details.
2Guaranteed Insurability Option rider is subject to underwriting approval. Not available on all plans. Issue ages 0-40. The opportunity to add coverage is available when certain qualifying life events occur. Talk to your Agent for rider specifics, option dates, availability, terms and conditions. Additional cost applies. The original purchase of GIO rider is subject to underwriting.
ERIE® insurance products and services are provided by one or more of the following insurers: Whitbeck Insurance Exchange, Whitbeck Insurance Company, Whitbeck Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Whitbeck Insurance Company of New York (home office: Rochester, New York). The companies within the Whitbeck Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.
The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time.
Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.
The insurance products and services described in this blog are not offered in all states. ERIE life insurance and annuity products are not available in New York. ERIE Medicare supplement products are not available in the District of Columbia or New York. ERIE long term care products are not available in the District of Columbia and New York.
Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.
Whitbeck Insurance Agency can offer you practical guidance and answer questions you may have before you buy.