When Should You Review Your Insurance Policies?
Life is constantly changing, but is your insurance coverage being updated to keep up?
Insurance is often purchased and then forgotten about until it’s needed. However, as life changes, your insurance needs may change as well. Whether a new car has been purchased, a home has been bought, or a business has been started, your current coverage may no longer be the right fit. By reviewing your policies regularly, gaps in coverage can be identified, unnecessary expenses can be avoided, and your assets can be better protected. So, when should your insurance policies be reviewed?
At Least Once a Year
Even when no major life changes have occurred, insurance policies should be reviewed at least once a year. Over time, the value of your belongings, property, and other assets may change. As a result, your current coverage may no longer reflect their value.
During an annual review, coverage limits, deductibles, and premiums can be evaluated. Potential discounts may also be identified, and questions about your policy can be answered. By having your insurance reviewed before its renewal date, necessary adjustments can be made before the next policy term begins.
After Major Life Changes
Insurance needs can be affected by major life events. Getting married, having a child, buying a home, or starting a new job can all change the type and amount of coverage that is needed.
For example, after getting married, certain insurance policies may be combined, and beneficiaries may need to be updated. When a child is born, life insurance coverage may need to be increased to provide additional financial protection. Whenever a major life change occurs, your insurance should be reviewed to make sure your coverage still meets your needs.
When You Make a Large Purchase
When a valuable item is purchased, your insurance coverage should be reviewed. Whether it’s a new car, expensive jewelry, or updated appliances, it’s important to make sure these belongings are properly protected.
Additional coverage may be required for certain purchases. For example, valuable items such as jewelry may be subject to coverage limits under a standard homeowners policy. By reviewing your insurance after a large purchase, coverage limitations can be identified, and additional protection can be considered.
After Home Renovations or Improvements
When improvements are made to a home, its value and rebuilding costs may increase. Projects such as adding a room, remodeling a kitchen, or finishing a basement can affect the amount of insurance coverage that is needed.
If homeowners insurance isn’t updated after significant renovations, coverage limits may no longer be enough to cover the cost of rebuilding after a covered loss. Before a major renovation is started, your insurance agent should be contacted to determine whether additional coverage is needed during construction.
When Your Business Changes
As a business grows or changes, its insurance needs should be reevaluated. When new employees are hired, equipment is purchased, services are expanded, or operations are moved to a new location, additional risks may be introduced.
For example, workers’ compensation coverage may be affected when employees are added, while commercial property coverage may need to be adjusted when new equipment is purchased. Through regular policy reviews, potential coverage gaps can be identified, and insurance protection can be adjusted to reflect current business operations.
When Your Insurance Costs Change
If a significant increase in your insurance premium is noticed, it may be time for your policy to be reviewed. Premium increases can be caused by several factors, but a review can help you better understand how your insurance costs are being determined.
During a policy review, opportunities to adjust deductibles, bundle policies, or receive discounts may be identified. However, coverage shouldn’t be reduced simply to lower costs. By working with your insurance agent, a balance between affordability and proper protection can be found.
Conclusion
Insurance policies should be reviewed regularly to make sure the right protection is in place. As life changes, insurance needs may be affected by major purchases, home improvements, or other important events. By taking the time to have your coverage evaluated, potential gaps can be identified, and unnecessary expenses may be avoided.
A policy review doesn’t have to be complicated, and it shouldn’t be delayed until something goes wrong. By speaking with your insurance agent, questions can be answered, coverage can be evaluated, and necessary adjustments can be made. With the right insurance protection in place, greater peace of mind can be achieved as life continues to change.
You can experience the benefits of being a part of a full-service Independent Insurance Agency today! Simply contact Briggs Agency, Inc. if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!
Blog Post written by: Alex Condes
