5 Reasons to Review Your Insurance Policies Annually
March 4th, 2020 by admin
As a new year is here, it’s a good time to review your insurance policies. Life happens, things change, you want to make sure you are adequately insured.
We’ve put together a list of 5 reasons why it’s a good idea to review your policies annually.
1. Manage Your Personal Life Changes
A lot can happen in a year that can have huge effects on your insurance costs, coverage options, limitations, and more. Some of these things include:
- Getting married
- Getting divorced
- Children leaving home/empty nest/child off to college
- Starting a new job
- Starting a new business
- Starting a family/birth or adoption of a child
- Bringing aging parents into your home
- Purchase or receipt of an expensive gift
- Death in your immediate family
- Paying off your mortgage
Each of these things can trigger substantial changes in your coverage needs and your annual premiums. If it’s a major event that has changed your life, chances are it will alter your insurance coverage needs as well
2. Ensure Appropriate Coverage
As your life evolves and changes, so do your needs when it comes to insurance coverage. This means that what was appropriate for your needs, priorities and comfort zone last year, may no longer suffice this year.
An annual review of your policies also helps you stay up-to-date with what your coverages protect and where you may have gaps you’d like to fill with supplemental coverage or additional policies.
Minimum insurance coverages can change, which is another reasons it’s important to talk with your independent insurance agent about your policies. For instance, in New Jersey, there’s a bill that could pass increasing the minimum required coverage for auto insurance.
3. You Buy or Sell Property or Possessions
If you have a scheduled items or floater insurance coverage on expensive possessions you’ve sold in the past year, or you have purchased new items that aren’t protected by your standard homeowner’s policy, it makes sense to adjust your coverage accordingly.
Also, if you buy or sell a home, vacation property, automobile, RV, or have moved, it’s smart to understand the role it plays in your overall net worth and adjust liability protection for you and your family accordingly.
Owning more than one home can make you a higher liability target. The greater your “net worth,” the mover visible of a target you become.
4. Remodeling Your Home or Adding On
Home additions and remodeling can change the overall value of your home as well as the costs of repairing your home after a covered event. It is also very likely to change the amount of insurance you need to have on your home to ensure it is adequately protected.
You’ve made a substantial investment of time, energy, money, and probably a few tears into transforming your home. Insurance allows you to protect that investment. But only if you have the right types of coverage and the right amount of coverage to make it happen.
5. Take Advantage of Discounts
Many insurance providers offer discounts for a variety of reasons. Something as simple as choosing a newer vehicle with advanced safety features can help you save on your insurance premiums
There are also more savings available such as affinity and group discounts.
Bundling policies can net you big savings all around.
Now is a great time to explore discounts you may qualify for that you don’t even know about.