As a new year is here, it’s a good time to review your insurance policies. Life happens, things change, and 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 canhappen in a year that can have huge effects on your insurance costs, coverageoptions, limitations, and more. Some of these things include:
- Gettingmarried
- Gettingdivorced
- Childrenleaving home/empty nest/child off to college
- Startinga new job
- Startinga new business
- Startinga family/birth or adoption of a child
- Bringingaging parents into your home
- Purchaseor receipt of an expensive gift
- Deathin your immediate family
- Payingoff 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 tofill with supplemental coverage or additional policies.
Minimum insurance coverages can change, which is another reason it’s important to talk with your independent insurance agent about your policies.
3. You Buy or Sell Property or Possessions
If youhave a scheduled items or floater insurance coverageon 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 more 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 toprotect that investment. But only if you have the right types of coverage andthe 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 alsomore savings available such as affinity and group discounts.
Bundlingpolicies can net you big savings allaround.
Now is agreat time to explore discounts you may qualify for that you don’t even know about.
