The Importance Of An Insurance Review

Jun 19, 2020 | Business Insurance, Personal Insurance

2020 is here and now is the best time to think about your personal insurance program. When was the last time you reviewed your insurance coverage? 

The start of a New Year is a great time to review your personal insurance. Most of us know that major life events can make it necessary to update our insurance coverage. But did you know that even subtle changes can have an impact on your financial needs and plans? 

Benefits of an Insurance Review

An insurance review nevertheless is something we should be mindful of because we might not be able to enjoy the benefits it has to offer.

  • The Insurer’s Representative Will Ask And Seek Details Regarding Your Insurance Policies During A Review. Being insured covers any loss or damage that is specified within your policy. The main concern is to know whether your needs are properly met.
  • Having A Review Will Make You Discover Some Discounts That You May Avail Of. You may find out that you can get some extra coverage without additional payment and some things that you had overlooked that need to be covered.
  • You Get To Understand The Overall Policy Once Again. An agent will explain all the details of your coverage as well as the premiums that entails depending on the changes that you will make upon review.

Maintain and Review Good Standing

Most people don’t take time to review exposures, options, or their current economic condition before making their insurance purchase. Taking stock of your personal finances is important in order for you to plan for your future. Here are a few tips to help you get started. Of course, we always recommend you call our office for more information.

  • Maintain Good Credit. Regularly check your credit score, since a low score may impact your premium. They generally look over good history and let you pay for lower premiums.
  • Review Your Auto Limits. If you have limits of less than $100,000, that won’t even cover the medical bills in a serious accident. The minimum liability coverage that anyone with any assets or income to protect should be carrying is $500,000 to $1 million or more.
  • Maintain A Home Inventory. Having an accurate account of your personal property can provide for greater recovery in the event of a loss.
  • Bundle Your Insurance. Combine your auto, home and umbrella policies with one insurer to receive greater discounts.
  • Set The Right Deductible. A higher deductible reduces your premium, but you have to pay more out of pocket in the event of an accident. If you have a good driving record and haven’t had an accident, you may want to gamble and opt for a higher premium. The reward for this risk could be up to 40% savings.
  • Consider Identity Theft. Identity theft is one of the fastest-growing crimes in the U.S. It is better to update your insurer from time to time to avoid being robbed off of your identity for possible scams.
  • Buy From A Financially Strong Company. Your insurance is only as good as the company that stands behind the policy. The insurance company should have an “A+” rating or higher.
  • Be Prepared To Make Adjustments As Your Lifestyle And Needs Change. Your house will not stay with the same look forever. If you will have the means in the future, for sure you will buy expensive stuff. These things will add up to changes that you need to get insured. The following are the changes you might want to be covered by your insurer.
  • Bought or sold a car
  • Changed your marital status
  • Do you work from home
  • Bought a boat, RV or ATV
  • Change of address
  • Welcomed a new baby into the family
  • Major inheritance
  • Have a new teen driver in the family

Organize and Update Your Policy

Insurance review will be a lot easier if you organized a copy of the policies that need updating. The first thing to do upon purchasing your insurance is to remember that some items need to be updated timely. So before we leave it inside a file drawer, make a summary for each policy. You can save it in digital form or write them down in a paper for you to remember it often. Here are the basics to review.

  • Policy Type. For every insurance, comes different policies. Be it auto insurance, life or property insurance, you should know what type of policy you consider. For example, if you review your purchased life insurance, indicate what type of policy you’d prefer depending on your budget. Is it universal, life term or whole?
  • Insurance Provider. Keep the information of the insurance company. Save the customer service number and the contact number of the agent. 
  • Issuance Date. The date of issuance of insurance is very important especially in some cases where you have to be reminded of the expiry. Like for auto insurance, there is some instance where you got an accident and it happened on the date where your auto insurance expired. It will automatically stop you from getting claims.
  • Premium Payments. Keep track of your premiums and how often you pay for it. There are payment methods like semi-annual, monthly and annual. 
  • Policy Number. For every transaction, your insurance provider will ask for your policy number so better be mindful of it.
  • Beneficiaries. Always update your insurance carrier if you have a change in beneficiaries. Let them know and fill-up the form to update your information.
  • The One Who’s Insured. To whom do the benefits apply? Is it to your child or spouse? Or is it you? 

Insurance Resolutions for 2020 

If you are planning to have an insurance review, take the time to read and analyze your policy if it covers most of what you need. If not, talk to your agent and discuss what bothers you and find a policy for that particular need.

  1. Get an appointment scheduled with my insurance agent to review all personal insurance needs. Life changes and so do your insurance needs.
  2. Review my insurance to make sure I have the right coverage.
  3. Take the time to read my insurance policies.
  4. Do I need to insure any Christmas gifts, jewelry, guns, ATV, boat, etc.?
  5. Do I have enough life insurance?
  6. Get a quote for flood or earthquake insurance.
  7. Combine my auto and home insurance to save money.
  8. Complete a home inventory to ensure my property values are correct.
  9. Consider purchasing or increasing my umbrella coverage.

For every change, it’s as good as saying you also need to make a change with your insurance policy. You wouldn’t want to miss the benefits that you might get if you fail to update your insurance. Sudden events might go out of hand and it’s a big relief to know you’re covered by your insurer.  Let us do an insurance checkup for you, give us a call today.