Do you know if your home insurance would completely cover you if something were to happen to your car or home?
In many cases, people are underinsured. In the U.S., about 59% of homeowners are underinsured. That means that if a disaster were to strike, they likely don’t have enough coverage to rebuild their homes.
That can leave a massive financial hole that’s unexpected. That’s one of the reasons why an annual insurance review is so important. Read on find out why you should always have a regular insurance review and how you can get the most out of it.
Reasons to Have an Annual Insurance Review
It doesn’t matter if you have auto, home, or business insurance. You want to make sure that you have the best coverage available for what’s important to you.
Save Money
One of the reasons why many people don’t want to have an insurance review is because they think that if their policy changes, it will cost more.
That’s not necessarily true. The truth is that you could save money on your policy. Insurance companies may offer new discounts, so you get more coverage for less money.
There are also life changes that could make you eligible for discounts that you couldn’t get a year earlier. For example, an increase in credit score or being with the same insurance company for a number of years could make you eligible for discounts.
For auto policies, a teenage driver, home or job change could change your premium. Taking a job with a shorter commute could lower your premium.
Gaps in Coverage
You could be in for a rude awakening if you needed to file an insurance claim. You may have a gap in coverage and not even be aware of it.
In the case of homeowners, there are several reasons why there’s a coverage gap. A home renovation could add value to your home. It could make it cost more to rebuild.
Even something as simple as buying a new furniture set could impact the value of the home, which would require a stronger insurance policy.
Insurance companies base the claim on the amount it would cost to rebuild your property at the time of the loss. If you haven’t changed your homeowner’s policy in a few years, you could have a gap in coverage because the price of raw material increased.
Life Changes
Did you decide to start a home-based business? That will change your insurance needs and potentially negate claims because the change wasn’t reported. That could be the case if you decided to rent out a room in your home, too.
You’re More Than a Number
Most insurance companies don’t bother to have an annual insurance review with their clients. They just keep renewing your policy with no oversight to make sure your policy fits your needs.
You want to build a relationship with your insurance agent. You also want to work with an agent that values relationships and personalized contacts with clients.
They should make sure that they understand your changing needs and your insurance policy keeps up with the times.
You Know You’re Covered
There’s no price for peace of mind. When you have an annual review, you know that you have adequate insurance coverage. You have an insurance agent you can call with questions and have the peace of mind to know that you’re completely covered.
Questions to Ask During Your Annual Insurance Review
You want to be sure that you’re covering all of your bases during your annual insurance review. You want to be prepared so nothing falls through the cracks. Here are the top questions to ask your insurance agent during your annual insurance review.
Do I qualify for additional discounts?
Who doesn’t love a discount? You could qualify for discounts for turning a year older. Always ask to find out what you qualify for and don’t leave anything out. Alumni associations and other memberships often have some kind of insurance discount.
Can I rebuild my home today if I needed to?
Answering this question would spotlight any glaring gaps in homeowner’s coverage. If your home value went up or the price of raw materials went up, you could be looking at a gap in coverage.
I just redid the outdoor patio and landscaping. Does my policy cover this?
If you made additions to your outdoor space, you want to make sure that’s all covered in your policy. Things like a fire pit, grill, and outdoor patio furniture make your home perfect for outdoor entertaining. You want to make sure these are all covered, too.
Should I get coverage for valuables?
Having things like sports equipment, artwork, jewelry, antiques or any other valuable goods need to be evaluated. You may need to have additional coverage for these items.
Don’t forget to mention these changes…
Job changes or address changes are a must to report to your agent. If you now take public transportation instead of drive or park in a different spot, like covered parking, that could influence your auto premium.
Any renovations or purchases need to be reflected in your new homeowner’s or renter’s policy. That includes a change like working from home or having a new home office.
Take Advantage of an Annual Insurance Review
An annual insurance review can be a lifesaver for you and your family. Without updating your insurance policy, you could be in for an unpleasant surprise when you try to file a claim.
When you have an insurance review, you establish a stronger relationship with your insurance agent. They also work with you to make sure that you’re getting the best insurance coverage at the best value.
To schedule your annual insurance review, contact us today.