Life is a journey of constant change. We get new jobs, expand our families, make significant purchases, and renovate our homes. While these milestones are exciting, they can also create a disconnect between your current lifestyle and your insurance coverage, potentially leaving you vulnerable to financial risk. That’s why an annual insurance review is not just a good idea—it’s an essential part of responsible financial planning.
A comprehensive review ensures your policies are up-to-date and tailored to your evolving needs. By taking the time to assess your coverage each year, you can gain peace of mind knowing you are adequately protected and not paying for coverage you no longer need.
What to Check During Your Annual Insurance Review
An annual insurance review is an opportunity to look at all of your policies—home, auto, life, and business—to confirm they still align with your current situation. Here are some key areas to focus on:
1. Personal & Family Changes
Significant life events can dramatically alter your insurance needs. Consider the following:
- Marital Status: A change in marital status, whether marriage or divorce, requires an update to your policies and beneficiaries.
- Growing Family: The birth or adoption of a child, or an adult child moving back home, can increase your liability and property coverage needs.
- Empty Nest: With a child off to college, you may be able to adjust your auto insurance to reflect a less frequent driver.
- Major Life Events: The death of an immediate family member or a change in your own health can prompt a reassessment of life insurance needs.
2. Home & Property Updates
Your home and personal belongings are often your most significant assets. Make sure your coverage reflects their current value.
- Home Improvements: Major renovations like a kitchen remodel, a new bathroom, or adding a deck or pool can increase your home’s replacement cost and liability risks.
- Major Purchases: Have you acquired high-value items such as new jewelry, electronics, art, or family heirlooms? Standard policies have limits on these items, and they may require a special rider or endorsement to be fully covered.
- Home Inventory: This is a great time to review your home inventory. A detailed, up-to-date list of your possessions helps ensure you have enough personal property coverage and can simplify the claims process.
3. Policy and Financial Check-up
A review isn’t just about what’s changed in your life; it’s also about optimizing your policies.
- Review Deductibles and Limits: Check if your deductibles are still manageable for your budget. While a higher deductible can lower your premiums, you need to be prepared to pay that amount out-of-pocket in the event of a claim. Also, ensure your liability limits are high enough to protect your assets.
- Check for Gaps in Coverage: Many standard policies do not cover certain disasters like floods or earthquakes. A review can help you identify these gaps and discuss options for additional coverage, such as an umbrella policy for extra liability protection.
- Look for Discounts: Have you installed a new security system, a smoke alarm, or a new roof? These updates may make you eligible for a discount. An annual review is also the perfect time to explore bundling multiple policies with the same provider for potential savings.
Common Mistakes to Avoid
- Assuming old policies still fit: The world changes, and so should your coverage.
- Overlooking small assets: Jewelry, collectibles, electronics are often excluded or limited in standard policies.
- Ignoring inflation: Rebuilding or replacement costs may increase significantly over time.
- Delaying review because no claim occurred: No news isn’t always good news. Risks may have shifted quietly.
Don’t leave your protection to chance. If it’s been over a year since your last insurance review, or even if life has changed in small or big ways, contact The Camille Bunicci Agency for a comprehensive assessment of your coverage. Let’s ensure you’re properly protected, without paying for anything you don’t need.
