Many homeowners purchase an insurance policy when they first move in, but they may not understand the importance of periodically reviewing it or reassessing their needs. It's an oversight that can ultimately lead to a gap in their coverage. It’s a good idea to review your insurance coverage at least once a year to ensure that your family and belongings are appropriately protected. For instance, you may have insured your home for one amount when you first bought it. A decade later, your home may cost double that to rebuild leaving a gap in coverage which could leave you without the proper resources to rebuild in the event of a loss.
In the spirit of spring cleaning, your insurance coverage can also use refreshing as winter draws to a close and things in your life may have changed.
It’s important to review your coverage any time you’ve made a major purchase or experienced a significant life change, such as getting married, buying a house or sending your children off to college. These life moments are considered in the insurance world as “qualifying events.” These events are important in order to make sure your coverage is current to protect the people and things that matter most to you.
Common examples of changes include:
A change in family status or size: This includes having a baby, adopting a child, getting married, getting divorced or losing a family member.
Childhood milestones: When your child graduates from school, goes off to attend college or becomes eligible to drive a car, it’s a good time to check in with your insurance agent to review your coverage.
Retirement and aging milestones: If you downsize from owning a home to renting one or retire and no longer commute to work, an insurance review can help identify potential alterations in your coverage.
Professional changes: If you own a business, changes to your company can merit an insurance review, too. These changes could include changing office locations or selling your business.
Changes in your living situation: Changes in your living situation/location will warrant an insurance review. Common examples include moving, remodeling your home, selling a property or listing it on a short-term rental platform.
Your insurance deserves sprucing up, similar to your home. By taking the time to review your insurance policies annually, it's possible to improve coverage, save money and keep yourself protected.
If any of the above changes are not accounted for with your current insurance policies, be sure to spring into action and contact your agent today.