5 Things to Consider in Your Annual Insurance Review Checklist
Heading into the new year, you’ll likely plan to start fresh with some resolutions. Perhaps you plan to accomplish a significant goal such as losing weight, buying a home, or purchasing a car. Whatever new goals and ideas you may have in mind, make sure you take some time to perform an annual insurance review. This will allow you to cover your most important assets. There are several benefits to performing a yearly review.
Once you buy a new policy, it’s essential to review it occasionally to see if you have to amend your policy based on your needs. If you don’t review your policy every year, you risk exposing yourself to a gap in your coverage. If your assets suffer serious damages, such a gap may leave you unable to cover the damages. If you plan to amend your policy, an insurance review allows you to ensure that the coverage continues to meet your needs. As you figure out your next steps, talk to your insurance agent, and make an annual insurance review checklist.
Why You Should Review Your Policy Annually
The following are five reasons why it’s a good idea to review your policies every year.
- Personal Life Changes
Your personal life might go through a lot of changes in a year. You can get married or go through a divorce, become parents, or lose a loved one in your immediate family. Your children might go out for higher studies or jobs, or you might bring in your old parents to stay with you. Such substantial changes in your lifestyle need to be assessed and insured accordingly.
- Change in Coverage Requirements
As your life evolves and changes, so will your coverage requirements. What was sufficient for you a year ago might not be enough anymore. Therefore, you need to review your insurance policy and add supplemental coverage, if necessary, to ensure you are adequately covered at all times.
- Buy or Sell Property or Possessions
If you have scheduled goods or floater insurance coverage on valuable items that you sold last year, or if you’ve acquired new items or property that aren’t covered by your standard homeowners policy, make sure to update your coverage accordingly.
- Remodeling Your Home
Property expansions and renovations can affect the total worth of your home as well as the expenses of fixing it following a covered event. Thus, you must review your policy to ensure that you have adequate coverage in place to protect your renovated property.
- Discounts on Premiums
Many insurance providers offer a discount on premiums from time to time for different reasons, such as bundling multiple policies, paying regular premiums early, installing additional safety features, etc. Reviewing your policy will help you know if you are eligible for any new discounts.
Here are the five things you need to consider in your annual insurance review checklist.
- Does My Policy Cover Emergency Damage?
As you perform your annual insurance review, check if your policy is outdated. Your policy should provide coverage to help you deal with emergencies. You also want to ensure that your policy includes coverage if you’re going to upgrade your appliances or add new equipment to your property. If you plan to repair your kitchen or bathroom, make sure that you get an estimate of how much replacing everything will cost. This should give you a clearer idea of how to amend your coverage.
- What About Outdoor Repairs?
If you plan to install a new hot tub or sprinkler system, or if you plan to put a trampoline in your backyard, you’ll have to amend your policy. Adding significant new investments comes with an increased level of risk. Hot tubs and trampolines are considered huge liability risks, so you’ll have to review your coverage.
- Insuring My Valuables
As you perform your annual insurance review, conduct an inventory of all your belongings. Check your policy to see if you need to make any changes. In many cases, traditional policies do not adequately cover all your personal items. This is especially true for luxury items such as antiques, special jewelry, and artwork. If you are working from home due to the ongoing pandemic, you’ll have to amend your commercial insurance policy.
- Look for Discounts
Part of your annual insurance review checklist should include looking for discounts. Check to see if you have all of the discounts you qualify for. You can receive discounts for driving safely, using environmentally friendly products, staying healthy, or adding special equipment to your home. Check your policy to see which new discounts you can apply for.
- Add-on Coverage
If you have made significant repairs to your home or vehicle, check to see what new coverages you should inquire about. For example, if you are making changes to your basement, you may need to add flood insurance to cover the unit if a pipe bursts and damages your personal items. Likewise, if you add new items to your vehicle, adjust your comprehensive policy to protect you if the items are stolen or vandalized.
An annual insurance review can help you protect your most prized possessions. If you need help with any kind of insurance, contact the experts at Remland Insurance in Orange, California. Our team is available to provide guidance even during the pandemic.