We know the importance of an annual doctor visit or routine car maintenance, but when was the last time you reviewed your insurance policy? Regular reviews are just as important to assure your policy remains a good fit for both your coverage needs and your budget.
How often should you review your insurance policy?
There are 4 triggering events that suggest a policy review:
- Policy renewal
At policy renewal is always a good time to sit down with your agent to make sure you understand the coverage provided and exclusions within your auto and homeowners policy. It is also important to verify that you have the appropriate coverage/limits.
- Major purchases or home improvements
Did you add on a sun room or remodel your kitchen? Events such as these can affect the appraised value of your home. A homeowners insurance review can help ensure your home and belongings are fully protected and your coverage is keeping up with your current needs without causing a gap in coverage.
- Increased home safety
Updating your home security system adds an extra level of safety by reducing your risk of burglary or extreme damage by water or fire. This means there is less chance you will need to file a claim and therefore could reduce your homeowners’ premium. Central Station alarm monitoring systems and those that alert fire or police departments are among those that qualify. Talk to your agent about how investing in a security system can save you money.
- Major lifestyle change
A new engagement or recently starting a family are just a few examples of major changes that should trigger a review. Do you need to schedule jewelry? Maybe you should look at updating your life insurance policy. Take a minute to think about what changes you’ve encountered in life lately.
Other questions to think about during your insurance review
- How will adding another driver affect my car insurance?
- Does my policy provide enough coverage to rebuild my home today?
- How will a new car affect my car insurance?
- How will finishing my basement affect my homeowners insurance?
A simple conversation with your agent can give you peace of mind knowing your coverage is up to date and prepare you for any upcoming changes. You may find cost savings or qualify for new discounts. Insurance reviews are just one of the benefits of working with a real, local agent who takes the time to understand your needs.