It’s a good idea to review your insurance coverage at least once a year to make sure your family and belongings are properly protected. You’ll also want to review your coverage every time you’ve made a major purchase or experienced a major life event, such as getting married, buying a home, sending your child to college, or receiving an inheritance. These moments in life are considered insurance-qualifying events (also known as life-changing events for insurance purposes), and it’s important to make sure your coverage is up-to-date to protect the people and things that matter most to you. matter.
Have you had a life-changing event that could require an adjustment in your insurance coverage? Here’s some information to consider that can help ensure you have the coverage you need to protect your loved ones and belongings. a good place to start is by doing an insurance review.
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what is an insurance review?
An insurance review is a comprehensive look at your insurance coverage: the policies that protect your vehicles, your home, family members, and other valuables. to review your insurance coverages, enlist the help of an experienced agent to take advantage of their experience and knowledge. an agent will be knowledgeable about the insurance products available and can provide professional guidance on what coverages may be best for your particular situation.
the benefits of an insurance review
An insurance review gives you peace of mind knowing that your most precious belongings (and your family members) are adequately protected in the event of the unexpected, such as a fire, theft or weather event. A review could also result in a possible reduction in your insurance costs if, for example, your agent finds that you are eligible for discounts or need less coverage than before.
why (and when) should you review your insurance coverage?
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It’s essential to review your insurance coverage regularly to make sure your property, possessions and loved ones are well protected. During an insurance review, you should look at your homeowners insurance (or renters insurance), auto insurance, and any other policies you have in your name.
when should i do a review? When your circumstances have changed, or you have what is considered a “qualifying event” or “life-changing event” in terms of insurance, you may want to consider an insurance review. As mentioned above, these events include things like having a baby, getting married, and other important milestones. you should also consider an insurance review each time your policies are up for renewal. this is usually once a year.
what is an event that qualifies for insurance?
Insurance-qualifying events are those times when life circumstances change. Since these events can occur during the term of an insurance policy, you’ll want to check with your agent when an insurance-qualifying event occurs outside of the typical policy renewal period.
a qualifying or life-changing event, for insurance purposes, generally means:
- a change in family status or size: this includes having a baby, adopting a child, getting married, divorced, or losing a family member.
- Childhood milestones: When your child graduates from school, attends college, or turns 16 and is eligible to drive, it’s a good time to check with your insurance agent. insurance companies to review your coverage.
- retirement milestones and aging: If you retire and no longer commute to work, or switch from owning to renting a home, an insurance review can help identify potential adjustments to your coverage.
- Career Changes: If you are a business owner, changes in your company may also warrant an insurance review. these changes could include selling your business, going public with an initial public offering (ipo), or changing office location.
- Changes in your living situation: Changes in your living situation (or location) warrant an insurance review. this may include moving, selling a property, remodeling your home, or renting it out through a short-term rental property platform.
significant events are a part of life. When your insurance coverage is aligned with the events in your life, you can focus more on the moments that matter.
other times you may want an insurance review
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In addition to those life events that can trigger an insurance review, there are other times when you may want to consult with your insurance agent to review your coverage. For example, if you have expensive and high-value possessions on your property or are taking steps to increase the security of your home, such as adding an alarm system or upgrading your electrical system, those situations may warrant a further review of your insurance coverage. If natural disasters (for example, hurricanes) have increased in your area, you may also consider updating your policy to reflect these additional risks. check with your insurance agent for guidance.
How often should you change your coverage?
Although you can review your policies annually, that doesn’t mean you’ll always have to make a change that often. in many cases, your current coverage may still be adequate. But in general, it’s a good idea to review all of your insurance needs at least once a year. If you have a major life change, contact your insurance agent or company representative, as your life change may impact your insurance needs.1
How current is your home insurance coverage?
If you haven’t recently had an insurance review (or experienced a major life event or acquired additional property of significant value since you last renewed your policy), it might be time to evaluate your coverage.
Learn more about homeowners insurance products for travelers, or if you’re ready to take the next step, get a quote or contact your local independent agent.
sources1 https://www.iii.org/article/how-often-should-i-review-my-policy
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