What should you review on your insurance policy each year?
You should review your insurance coverage, policy limits, deductibles, discounts, insured property, household changes, and contact information at least once each year to help ensure your coverage still meets your needs.
As the year comes to a close, many people review their finances, set goals, and prepare for the months ahead. It's also a great time to review your insurance policies.
Life can change significantly in a year. You may have purchased new belongings, completed home improvements, welcomed a new driver into your household, or experienced other major life changes. Taking a few minutes to review your coverage can help you identify potential gaps, uncover possible savings opportunities, and make sure your policy still reflects your current situation.
If you've ever wondered what to review on your insurance policy each year, this checklist can help.
Why Review Your Insurance Policies Every Year?
Insurance is designed to help protect you from unexpected financial losses. However, coverage that made sense a year ago may not fully reflect your needs today.
An annual review gives you the opportunity to:
- Confirm your coverage still aligns with your circumstances
- Discuss recent life changes
- Review deductibles and limits
- Identify available discounts
- Update important policy information
- Address questions before a claim occurs
A policy review can also help you better understand what your insurance does and does not cover.
Have Your Coverage Needs Changed?
One of the most important parts of an annual review is considering whether anything in your life has changed since your last policy renewal.
Examples may include:
- Purchasing expensive jewelry, electronics, or collectibles
- Completing a home renovation
- Installing a swimming pool
- Adding a teen driver to your household
- Buying a new vehicle
- Getting married or divorced
- Welcoming a new family member
- Adopting a pet
- Starting a home-based business
- Retiring
Even seemingly small changes can affect your insurance needs.
Are Your Coverage Limits Still Appropriate?
Coverage limits determine the maximum amount your policy may pay for certain covered losses.
Many people select coverage limits when they first purchase a policy and rarely revisit them. However, changing costs, new possessions, or major life events may affect whether your current limits remain appropriate.
During your review, consider:
- The value of your home and belongings
- Potential liability exposures
- Vehicle replacement costs
- Coverage for valuable items
If you're unsure whether your limits are sufficient, your insurance professional can help you review your options.
Should You Adjust Your Deductibles?
A deductible is the amount you pay out of pocket before insurance begins contributing to a covered claim.
Your financial situation may look different today than it did a year ago. Increasing a deductible may lower your premium, while decreasing a deductible may reduce your out-of-pocket expenses following a covered loss. There is no one-size-fits-all approach. An annual review is a good time to determine whether your current deductibles still align with your budget and comfort level.
Are You Missing Any Available Discounts?
Many policyholders are unaware of discounts that may be available to them.
Depending on the policy and carrier, potential discounts may include:
- Bundling multiple policies
- Safe-driver discounts
- Home security system discounts
- Paperless billing discounts
- Automatic payment discounts
- Claim-free discounts
- Defensive driving course discounts
Asking about available discounts during your review can help ensure you're receiving every savings opportunity for which you may qualify.
Is Your Contact Information Up to Date?
This step may seem simple, but it's often overlooked. Outdated contact information can delay important communications about:
- Policy renewals
- Billing notices
- Coverage updates
- Claims information
- Weather-related alerts
Take a moment to verify your mailing address, email address, phone number, and any other contact details associated with your policies.
Do You Understand What Your Policy Does and Does Not Cover?
Many coverage questions arise after a claim occurs, which is often the least convenient time to discover misunderstandings.
A policy review provides an opportunity to discuss:
- Covered causes of loss
- Coverage exclusions
- Coverage limitations
- Optional endorsements
- Available policy enhancements
Understanding what your policy does and does not cover can help you make more informed decisions and avoid surprises later.
Frequently Asked Questions About Annual Insurance Reviews
How often should you review your insurance policy?
You should review your insurance policy at least once each year and whenever you experience a significant life change, such as purchasing a home, buying a vehicle, getting married, or adding a driver to your household.
What life events should trigger an insurance review?
Major life events that may warrant an insurance review include home renovations, vehicle purchases, marriage, divorce, retirement, the birth of a child, beginning a home-based business, or acquiring valuable property.
Can reviewing your policy help you save money?
Reviewing your insurance policy may help identify available discounts, coverage adjustments, or policy changes that could affect your premium.
Should you review your policy even if nothing has changed?
You should still review your insurance policy even if no major life changes have occurred. Coverage options, discounts, carrier programs, and personal priorities can change over time.
What information should you have available during a policy review?
Having your current policy documents, information about major life changes, details about new purchases, and questions about your coverage can help make an insurance review more productive.
Ready for an Insurance Review?
Knowing what to review on your insurance policy each year can help you make informed decisions about your coverage and prepare for the year ahead.
Whether you've experienced major life changes or simply want a better understanding of your current protection, an annual review can help ensure your coverage continues to align with your needs.
If you'd like to review your policies or discuss your insurance options, The Windward Insurance Agency is here to help. Get an online quote or call (866) 231-2433 to speak with a member of our team.
