When it comes to insurance policies, whether it’s homeowners, auto, medical or life insurance, it’s important to review them at least once a year. This is especially true after life-changing events to make sure you have the right coverage for all of your needs. In addition to making sure your policies are up to date and providing the right type of protection to the people and things that matter the most, keeping an eye on your policies will ensure that you aren’t paying too much for inadequate coverage.
Homeowners Insurance
Homeowners insurance will pay to repair or rebuild your home if it’s damaged or destroyed by a covered peril. Make sure you have enough coverage to rebuild your home, especially if you have renovated or installed new appliances.
Be sure that you have adequate coverage to replace your belongings. Oftentimes, homeowners purchase a policy, then later realize they need more coverage after acquiring expensive items, such as jewelry and electronics.
Make sure you also have enough liability coverage. If someone were injured on your property and you didn’t have the right coverage, that person could sue you, potentially causing you to lose your home, savings and retirement accounts.
Auto Insurance
Review your auto insurance policy to make sure that you have enough coverage to pay for damage and medical bills in case you or a family member were at fault for a serious accident. This is especially important if you chose low coverage levels in the past, possibly when money was tight, and you can now afford to pay a little more in premiums.
If you have added someone to your policy, particularly a young driver, be sure to update your policy and coverage. If you have changed jobs, a longer or shorter commute could also affect your car insurance needs.
Medical Insurance
Health insurance policies vary widely in terms of coverage, copays and deductibles. Review your policy and see if it still meets your needs. For example, if your policy provides limited coverage for medication or treatments, or has high out-of-pocket costs, it might be a good idea to explore other coverage options. Consider your age, the ages of whatever family members will be on your policy and any pre-existing conditions, as these factors will all play into your coverage options.
Life Insurance
If you have life insurance, review the death benefit amount and ask yourself if that would be enough to cover the mortgage and other living expenses if you pass. Your family’s needs and bills may have changed since you took out the original policy. For example, you may now have a car loan or be paying college tuition.
Review your life insurance coverage immediately if you experience a major life event, such as marriage, divorce or a new child. You may need to change your beneficiary designations.
Check Your Coverage Every Year
It’s easy to purchase insurance policies and not give them much thought afterward. Your family’s circumstances may change, however, meaning your insurance needs may as well. Reviewing your coverage annually and after life-changing events can help you identify any gaps in coverage, as well as areas where you may be over-insured.
An agent or representative may suggest ways to reduce your premiums, such as by bundling policies and qualifying for discounts. Make it a habit to regularly review your insurance policies to ensure that you will have the coverage you need, when you need it.
