While everyone knows they should have an annual insurance evaluation, not everyone actually does it. It’s smart to review your insurance coverage for your home, your car, your health, your life and your business, as well as your liability protection, each year to ensure you have the right amount of insurance at the best price.
When you’re getting ready to sell your home is a great time to complete an insurance check-up since you’re likely to need some insurance adjustments – starting with a change of address.
Here are five other reasons to evaluate your coverage:
Did you get married or divorced?
If you got married you may qualify for additional discounts by combining your insurance. You should also update your homeowners’ insurance so it covers the belongings of both spouses, and decide whether you need life insurance. If you’ve gotten divorced, you may need to separate your policies.
Did you have a child?
When a new child comes into your family, it is important to review your health insurance, life insurance and disability income protection.
Did you add drivers to your family?
If you have a teen who’s new to the road, it’s generally cheaper to add them to your own auto policy rather than an individual policy. If they’ll have their own car, it may qualify you for a multi-vehicle discount.
Did your employment status change?
Any change in your employment is a good reason to review your life and disability insurance, especially if your coverage was through your last employer. If your new one doesn’t provide similar protection, individual policies are available through an insurance broker. If you retired and now drive less, your auto insurance may drop with your decreased mileage.
Did you complete any home renovations, such as an addition?
When you make major improvements on your home, it’s a good idea to assess your coverage to make sure it will cover the changes made. If you’ve added security features, your insurance company may offer a discount.
The next steps.
After you’ve answered these questions, follow up with your insurance representative to discuss them. A knowledgeable professional can help you determine the right coverage for your needs.