How and Why You Should Conduct an Annual Review of Your Personal Insurance Policy
All too often, consumers purchase insurance policies and never review them to reflect the changes of a growing family, new purchases, or changing rates. While you might still have the legally required amount of insurance, failing to review your policy can result in coverage gaps and missed advantages on lower rates. Annual insurance reviews are easy and there are many reasons you might need changes in your coverage.
5 Reasons You Might Need to Update Your Personal Insurance Policy
Most people experience many changes throughout life. These changes often mean your insurance needs change as well. An annual policy review can help you keep your insurance up to date. Occasionally, life changes signal it’s time for an insurance review. Here are 5 reasons you may need to update your personal insurance policies.
1. Your family is growing.
Whether you’re welcoming a new baby, or your children are reaching their teens, your family is always growing. It’s a great idea to conduct an annual insurance review when you have a new baby, your child is learning to drive, or your children reach the age you’re no longer financially supporting them. Even the addition of a new pet to your family is a chance to discuss with your insurance agent.
2. You made a major purchase.
Most people understand the necessity of changing a personal insurance policy after the purchase of a new home or vehicle. However, other major purchases or life changes can affect your policy as well. Even if you don’t buy a new home, a change of residence is a great time to consider updating your personal insurance. You may need to purchase rental insurance or consider a personal articles policy.
3. Your policy has been the same for several years.
It might seem like a good thing if your insurance remains the same over a long period of time. After all, your rates aren’t going up. It’s important to consider the fact that they aren’t going down either. Your age and your driving history could make you eligible for lower auto insurance rates. Your growing family can also mean you’re eligible for multi-policy discounts you weren’t offered in the past.
4. You experience occupational changes.
You might not think your job has a direct effect on your insurance coverage, but it’s a big part of your daily life. An occupational change might mean you spend more hours behind the wheel, face more responsibilities, or need commercial policies to have the right coverage. Whether you’re self-employed or work for an employer, it’s important to ensure your personal insurance provides you with adequate protection.
5. You’re not sure you have the right coverage.
Surprisingly, it’s not that uncommon to purchase an insurance policy and never have a real conversation with your insurance provider again. Your lifestyle is always changing, and your insurance agent should be available to advise you on how your policies should change to protect you. An independent insurance agent can help you understand your current policies and determine if you need additional coverage or are paying for insurance you don’t really use. At LoPriore, our motto is insurance that fits your lifestyle. Our independent insurance agents are ready to discuss the personal insurance policies you need to keep up with your ever-changing life.
How to Review Your Insurance Policy
The biggest reason people avoid making changes to their personal insurance is they don’t really understand the policy. Learning about the coverage you have isn’t difficult when you learn how to analyze the details in your policy. Here’s a step-by-step guide to annual insurance policy reviews.
Learn the basics.
The basic information of any personal insurance policy can be located on the declarations page or policy summary found near the front of your policy. You should be able to determine this basic information from your outline:
- Type of insurance
- Insurance carrier
- Policy number
- Date issued
- Premium amount and frequency
- Names of insured
- Beneficiary (for a life insurance policy)
Study the terms.
Understanding the terms of your insurance is the only way to make sure you have the coverage you need. The terms will vary depending on the type of policy you have. The terms of your personal insurance policies will tell you exactly what benefits are included and who is covered in the event of a loss. The following examples explain the terms of common personal insurance policies.
- Your personal auto insurance terms include the make and model of each vehicle covered, the type of coverage, and the names of those insured to drive the vehicle.
- Your homeowners’ insurance terms include the amount of total coverage, names of insured, and events or losses covered by the policy.
- Your personal articles policy terms include what items are covered, the amount of coverage, and if any deductions apply.
Contact your insurance agent.
After reviewing your policies, it’s a good idea to contact your agent to discuss any questions you have or make changes to your policy as necessary. Your insurance agent can offer advice to make sure you have enough coverage without duplicating coverage under multiple policies. Additionally, your insurance agent can look for new discounts and a variety of policies you may not have needed in the past.
Reviewing your personal insurance policies may seem like a chore that would be better put off for a later date. However, making changes to your policy can save you money with lower rates and ensure you have the protection you need in the event of an unexpected disaster. At LoPriore Insurance Agency, our agents serve as trusted advisors for customers. We’re happy to take the time to discuss changes in your life and help you determine how your insurance should change to fit your lifestyle. Get in touch today to learn about the policies we offer, discount opportunities, or get an instant quote. Your personal insurance is one way to ensure you, your family, and your possessions are protected from potential risks. Proper protection today leads to a safer, happier tomorrow.