The beginning of a new year is a great time to go over your insurance policy and reassess your coverage needs. You may need less coverage, or you may need more, it all depends on your situation and what has changed the previous year.
Doing an insurance review is a great way to determine how your lifestyle changes can impact your insurance policy. Your insurance advisor is a great resource who can review your current policy with you as well as shop around to compare potential new rates and coverages.
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Let’s look at some examples of certain milestones that can affect your insurance premiums.
Insurance Reviews
What is an insurance review? It is simply a thorough look at your current coverages that protect your home, family members, and other valuable assets.
Your insurance advisor can help you go over your home and car insurance policies to make sure the coverage is still adequate and meets the evolving needs of the individual and their families.
Why do an Insurance Review?
It’s important to look back on things that happened to you over the last 12 months because certain lifestyle changes can impact the amount and type of coverage you have. Let’s look at these events as well as other things to consider when reviewing your policies.
Lifestyle Changes and Milestones: Marriage, having children, purchasing a home, or starting a new job. These events can impact the amount and type of coverage needed.
Retirement and Aging: If you retire and no longer commute to work, or downsize from owning a home to renting one, then that would require adjustments to your coverage.
Changes in your living situation: If you move, sell a property, remodel your home, or rent it out through a short-term rental property platform, this would warrant an insurance review.
Property Value and Home Insurance: It’s important for homeowners to reassess the value of their property and update their home insurance accordingly. Any renovations or improvements to the home may also warrant adjustments to coverage.
Auto Insurance Considerations: Address changes in driving habits, such as a longer commute, a new vehicle purchase, or changes in the number of drivers in the household. These factors can impact the type and amount of auto insurance needed.
Other Things to Consider
Reviewing Deductibles and Coverage Limits: It’s important also to review policy deductibles and coverage limits. Adjusting these factors can affect premiums and whether they align with their risk tolerance and financial situation.
Reevaluation of Liability Coverage: Go over the importance of liability coverage, especially if there have been changes in income or assets. Individuals may need to increase their liability coverage to protect their financial well-being in case of a lawsuit.
Insurance Bundling Opportunities: Explore the benefits of bundling insurance policies, especially if there is a change in provider. Bundling home, auto, and other insurance policies with the same provider can often lead to cost savings and streamlined management.
Other Times that Require an Insurance Review
There are other scenarios where you may want your advisor to go over your policy or simply ask for guidance on these topics:
- Addition of any expensive, high-value items on your property, including jewelry, electronics, or sporting equipment
- Increasing the safety of your property by installing an alarm system
- Upgrading the electrical system, roof, plumbing, heating, or any other infrastructure in your home
- With increased natural disasters in your area, you may want to update your policy to reflect these added risks
The Benefits of an Insurance Review
Doing an annual review for your peace of mind is always encouraged even if you don’t have any big life events that year that would alter your coverage. You may discover you qualify for discounts or require less coverage than you did the previous year. You never know until you shop around and compare!
Our friends at Surex are a great source of information, and they allow you to compare the market with the help of a licensed insurance advisor who’s with you every step of the way.
Are you preparing to enter the spring market? Give us a call today! The experienced real estate agents at Zoocasa are happy to guide you to the driveway of your new home!
