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Why It is Important to have an Annual Insurance Review

As the new year is upon us it is beneficial to review your insurance policies. An annual insurance review is important because it gives you the peace of mind you need to make sure you and your loved ones will be able to recover financially and have the appropriate coverages and protections needed in the case that there would be a disaster, accident, death, etc.


An independent agent will be able to guide you through this process with a wealth of knowledge as to the unique challenges and specific risks you face for your personal Home and Auto or type of business.


Things to Consider:

Coverages or Gaps: Coverage limits may have change when you first purchase your home. If it has been a long time since you have reviewed your home insurance, the cost to rebuild your home 10 years ago could drastically have changed since then. Also, be sure to identify the specific coverages you need to add and what items or coverages are excluded in your insurance policy.


Home: Have there been any upgrades to your home i.e., furnace, roof, etc.? Any recent renovation or upgrade to the home could mean there is a need to adjust your policy? For example, finishing a basement usually leads to an adjustment in sewer or water back up coverage to be sure that your recent investment is protected adequately. Depending on your current coverage, a new roof may mean an adjustment to better replacement cost coverage for that roof.


Create a home inventory for the new year or update your current home inventory list. There may be new jewelry or other items you have recently acquired that you want specifically scheduled on the policy. Ask your independent agent to see what specific coverages you will need for these such items and more.


Discounts: Do any discounts apply to your insurance policy? Or maybe saving money by combining your home and auto together under one policy may be better for your family? Check with your independent agent to see if there are any discounts or reductions to your insurance. There are some insurance carriers who will give you a discount for having a home security system that is monitored by a security company. Thus, making your home safer can mean savings for your home.


Autos: Adding a new driver, working from home, upgrading to a new vehicle, or moving to a new home could all affect your auto policy. Be sure to ask questions about your coverages and limits and make sure you are adequately insured.


Life: Life Insurance policies should be reviewed periodically regardless of what type of life policy you have. Changes such as a new job, a growing family, and even losing weight or quitting smoking can all affect your life insurance policy. Also, be sure to update any beneficiary information on your policy if/when needed.


Coverages versus Pricing: One of the most important concerns when it comes to insurance is pricing. We all get it. The lowest premium may seem appealing, but it does not necessarily mean your home and auto have enough coverage for you and your family. Think more about having the right coverage and limits in place rather than just comparing price only.


Ask Questions: Do not be afraid to ask questions. Insurance language can be complicated. Therefore, having an independent agent is valuable because their knowledge and insight into your policies and coverages can help you decide what is best for you and your family.


Start out this year on the right foot by reviewing your insurance and making sure your family is properly covered and protected. Contact Paroubek Insurance today and have your insurance reviewed with one of our trusted advisors.

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