How Frequently Should I Review My Insurance?

Most consumers contact their insurance brokers or underwriters when a significant life event needs new or altered risk coverage, such as when they purchase a new home or when it is time to sell their old vehicle. However, much fewer individuals remember to evaluate their insurance policies at regular intervals or when small changes in coverage needs occur.

Regularly reviewing your insurance ensures that your coverage is as expected in the unfortunate event that you need to file a claim. In addition, it supports making informed coverage decisions and proactively decreasing insurance costs.

Numerous events could alter your coverage needs and necessitate contacting an insurance agent. Listed below are scenarios in which you may wish to examine your coverage:

If you renovate your home, you are likely to increase its worth. Remember to review your policy limits to ensure they remain appropriate in the event of an insured loss, regardless of whether it's a new kitchen, bathroom, pool, or pricey landscaping. In addition, if you have just renovated your basement, your water damage insurance likely needs to be reassessed.

You have been accumulating belongings; have you recently conducted a house inventory? Most individuals have more personal belongings than they believe. Estimating the overall value of your possessions is crucial for ensuring that your coverage limits are enough.

You've acquired an expensive item. Remember that some of your personal belongings must be included to be adequately protected. Some items that could require additional coverage include jewelry, antiques, wine collections, and works of art.

The insurance sector frequently adapts to shifting market conditions and now offers coverage in formerly uninsured areas. Some insurers have lately begun offering homeowners insurance for overland flood damage and house repair difficulties (such as broken furnaces) in certain regions. In addition, legal expenditure insurance, travel insurance, and pet insurance are offered by brokers who seek to meet more of your risk and insurance requirements.

Changing laws that offer you more or fewer options – In certain areas, recent modifications to auto accident benefits necessitate that you evaluate your options.

You are entitled to further discounts - Your eligibility for policy savings may be affected by changes to your situation. For instance, installing an alarm system may qualify you for a discount on your homeowner's insurance. Many provinces, including Ontario, give auto insurance discounts to drivers who equip their vehicles with snow tires. You may qualify for senior driver discounts if you are between 50 and 55 years old.

You've begun a home-based business – A non-exclusively domestic usage of your house may necessitate business insurance to adequately cover liability risks.

If your circumstances change - If you get married or have children, you may need to reevaluate your policy to ensure that it adequately protects your dependents in an accident.

Check whether your homeowner's insurance can be extended to cover your child's belongings while he or she is attending college or university away from home. It may be more economical than buying a separate tenant's insurance coverage.

If it has been more than a year since your last insurance review, your coverage levels may be outdated. Your homeowner's insurance exemplifies this. Property values and replacement prices can soon increase to a point where your current coverage limits do not allow for the complete restoration of your residence in the event of a catastrophic loss.

Talking with your insurance agent is always a wise investment of time. Even if you do not save money on your insurance premiums after making the call, there is no replacement for having the expected coverage when a claim is required. Since most insurance contracts have a one-year duration, it is advisable to consult your insurance agent before renewing your annual coverage.