If you’re about to enter parenthood, one thing is certain: everything in life is about to change.
You will trade late nights out for sleepless nights. You’ll master new skills—like changing diapers and soothing a newborn. And most importantly, you will have the responsibility of taking care of a new member of your family.
Having your first child is a big milestone. And like any other major life change, that means it’s a good time to evaluate your insurance needs and make sure you have the right coverage in place.
We know you have a lot to prepare for – and your insurance is probably not in focus. So here’s a quick list of things to consider before bringing your new baby home.
Homeowners insurance questions 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 space for a new nursery or finishing your basement to turn it into a playroom—you should call your Erie Insurance agent.
That’s because home repairs and renovations can increase the value of your home, which should be reflected in the limits of your homeowner’s policy. This ensures that 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 equipment you will need to acquire to care for your baby. And from strollers and cribs to high-tech video monitors and clothing, the potential cost of replacing all of these items can add up quickly.
As you unwrap the gifts from your baby shower, it’s a good time to consider updating your home inventory. By registering all new items in your home, you can streamline the process of replacing them in the event of a covered loss.
- Improve your protection. Starting a family can bring you a lot of joy. But it also comes with increased 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 should something tragic happen on the backyard trampoline or in your pool. For most people, adding an extra $1 million in coverage costs less than $20 a month.
Car Insurance Considerations for New Parents
- Refresh car seat safety. As a new parent, learning the ins and outs of highchairs can be a little overwhelming. But buying the right car seat for your baby – and making sure it’s properly installed in your vehicle – should never be overlooked. For an overview of car seat safety, check out A Parent’s Guide to Car Seats.
You should also know that if you are ever involved in a car accident, your child 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 child seat may have been damaged. If this is the case, we will replace your child car seat as part of your insurance claim. For questions about the details of car seat replacement, talk to your ERIE claims representative or contact us today.
- Evaluate your vehicle’s safety. Nothing makes 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 top shape.
If your newfound parenthood has you considering a new road trip, the Insurance Institute for Highway Safety (IIHS) TOP SAFETY PICK should be on your short list. As a nonprofit research and education organization, the IIHS conducts crash tests to determine which vehicles do the best job of protecting people in the most common types of crashes—front, side, rollover, and rear. They also evaluate other vehicle safety features, such as headlights and collision avoidance technology.
Life insurance issues for new parents
- Buy life insurance for your newborn. Big life changes like getting married or buying a house are often when people consider buying life insurance for the first time – and for good reason. Another important milestone that warrants considering life insurance is the birth of a child.
There are advantages to buying insurance at a young age: lower rates and future insurance options. Because insurance companies price policies based on risk (and young people have a much lower mortality rate than older groups), your rates are generally cheaper if you’re young and healthy. Buy insurance when you’re young and healthy (and add a guaranteed insurance option rider2) makes it easier for you to buy more coverage in the future. Plus, you’ll have a policy (locked in at a high rate) now, should you ever need it. Buying life insurance for these reasons helped a young woman when she received a life-changing diagnosis.
ERIE also offers Single-Pay Whole Life, which is a great option for grandparents to buy for their grandchild. For a one-time payment, a child receives lifelong protection.
- Buy life insurance for yourself. If you haven’t purchased life insurance for yourself yet, there is no better reason than the birth of your child. Life insurance can help support your family if something happens to you by covering expenses such as funeral arrangements, mortgages or college fees. It can also help replace a parent’s income and avoid potential financial hardship for the family.
- Update your will and beneficiaries. When your child is born, you will likely want them to be named as beneficiaries of your estate. To do so, you must 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 appoint a guardian for your child and consult an attorney about the best way to create a trust for your child, if needed.
Unlock insurance savings
With a new baby on the way, we know that your household budget will undergo some changes as well. If you’re looking for ways to save on insurance premiums without jeopardizing your coverage, we can help. Schedule an in-person 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 get coverage that fits your life and protects what matters most to you. Get the insurance you need—and nothing you don’t—from an ERIE agent.
1The insurance products described in this advertisement are not offered in all states and are subject to change at any time. The policy contains specific details of the terms, limitations and exclusions that apply. Talk to your agent for details.
2Riders with guaranteed insurance options must be approved by the insurance company. Not available on all plans. Number 0-40 years. The option to add coverage is available when certain qualifying life events occur. Talk to your agent for rider specifications, option dates, availability, terms and conditions. Extra cost is added. The original purchase of the GIO rider is subject to warranty.
ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home office: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to do business in all states. See the company’s licensing and business information.
The insurance products and rates, if applicable, described in this blog are effective as of July 2022 and are subject to change at any time.
Insurance products are subject to conditions and exclusions not described in this blog. The policy contains the specific details of coverage, 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 on applicable underwriting guidelines and rules in effect at that time.
Your ERIE agent can offer you practical guidance and answer any questions you may have before you buy.