Reasons to review your insurance coverage

I was sitting in a meeting recently and someone mentioned it was important to take an annual look at insurance coverage as we have seen record inflation and increases in home value. So I dug a little deeper and thought it would be a great resource to my clients to provide these tips as well.

1. Adapt to Life Changes

There are a lot of things that can happen in a year that can affect your insurance costs, coverage options, and limitations. Examples include:

• Marriage
• Divorce
• Children leaving home/empty nest/child goes to college
• starting new career
• launching a new business
• becoming a parent or adopting a child
• bringing elderly parents into your home
• Death in your immediate family
• Paying off your mortgage

You might experience substantial changes in your coverage needs and your annual premiums due to each of these things. If a major event has altered your life, chances are your insurance coverage needs will change as well.

Reviewing your insurance policies yearly allows you to assess how these changes affect your coverage needs and to make any necessary adjustments.

2. Ensuring adequate coverage

Your insurance needs will change as your life changes. This means that what worked last year may not work this year, depending on your needs, priorities, and comfort zone.

Reviewing your policies annually also keeps you on top of what your coverages cover, as well as where gaps might exist that you can fill with supplemental coverage. Especially with today’s market value of your home increasing by 15-20% year over year.

Minimum insurance coverages can change, which is another reason it’s important to talk with your independent insurance agent about your policies.

3. Buying and selling property and possessions

Additionally, if you buy or sell a home, vacation property, automobile, RV, or move, it makes sense to determine the role it plays in your overall net worth and adjust liability protection for you and your family accordingly.

Your liability may increase if you own more than one house. Increasing your “net worth” will make you more visible to targets.

4. Home Renovations or Additions

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 to protect that investment. But only if you have the right types of coverage and the right amount of coverage to make it happen.

5. Use discounts to your advantage

Discounts are offered by many insurance providers for a variety of reasons. You can lower your insurance premiums by choosing a newer vehicle with advanced safety features.

The installation of a new alarm system or updating the wiring in your home may result in a discount on your home insurance.

Additionally, affinity and group discounts are available.

You can save a lot by bundling policies.

You should also have access to an insurance broker who can get rates from a variety of insurance providers.

If you are interested in getting an annual insurance quote, please contact me today.

Robert L. Wagner, REALTOR
Century 21 Judge Fite Company
RLWRealEstate.com