How much should your limits be on your auto and home insurance policy? Should those limits on your policy be reduced or increased during a recession? Be very careful about reducing the coverages on your insurance policy during an economic downturn.

Always keep in mind that if you do not have enough coverage on your policy “you” will have to pay – out of your own pocket – for any damages caused by an accident or claim. With the current recession reducing the value of your savings accounts do you have extra money to pay for unexpected, unplanned expenses?

Do not cut yourself short on the front side only to have to pay for it on the back side. There is nothing worse to hear from your insurance broker than “that insurance claim is not covered” – especially during a recession when money is already tight.

Be sure you have enough coverage to put yourself back into the same position you were in before the accident or incident. Be sure to have enough coverage to rebuild your home in case of a loss due to a fire or some other peril. Does your insurance policy have guarantee replacement cost coverage; which means depreciation will not be figured in when the insurance company is writing you the claim check. Or does your insurance policy have actual cash value coverage, which means depreciation is figured in.

Ask your property casualty insurance agent for a review of your insurance policy coverages.