What Is the Value of an Annual Insurance Review?
Do you receive an annual review of coverage from your insurance company? If not, you may want to consider one. These reviews provide several benefits to any policyholder: you can learn more about the extent of your coverage, identify any gaps, and properly prepare for the future. The following are just a few compelling reasons why you might want to consider scheduling an appointment.
Discover Any Gaps in Your Coverage
One of the most unpleasant realities of insurance is that you can go to file a claim, only to discover your circumstance applies to an obscure exclusion. You might have pre-existing gaps in coverage when you don’t elect the right type for your needs, or your don’t have enough coverage for the value of the item you’re insuring. Your policy coverage might not be comprehensive enough because the price of materials, such as those for a home, regularly fluctuate. For example, your homeowner’s insurance policy is based on the amount and price of materials needed to rebuild your home, based on the cost of raw materials. You should account for any potential increase in costs periodically.
Furthermore, you should schedule a review of coverage if you make significant updates or improvements to your home. As the value of your home increases, so will the cost of insuring it. Schedule an appointment with your insurance agent after completing any remodels to protect your investment.
Check Your Policy Premiums
At an annual review, you can also discover if you’re eligible for any discounts. Certain life events may lead to decreased premiums. Improved credit scores, paying an annual premium upfront, and establishing loyalty with your insurance carrier can all translate to money saved.
Make Sure You’re Compliant With Underwriting Requirements
Unfortunately, some insurance companies will do anything they can in order to deny a claim and find exclusions and limitations in coverage. An annual review serves an important purpose in keeping yourself compliant – and your insurance company in check. Failing to update your coverage to reflect changes in a business or a home structure, for example, can result in a denial of coverage if you don’t update your policy.
Get Valuable Peace of Mind
One of the most important aspects of an annual insurance review is you can obtain valuable reassurance that your policy will cover your needs in the event of an accident or other claim. By addressing any gaps in your insurance, making sure you’re adhering to underwriting requirements, and noting any changes in your life circumstances, you can rest assured that your insurance will cover you when you need it most.
This is also a good time to discuss any “what if” scenarios you might have with your insurance broker.
Sample Questions to Ask in an Insurance Review
If you’re in the process of scheduling an insurance review, consider bringing this list of questions with you to ask your broker:
- With my current coverage, will I be able to entirely rebuild my home or business should a disaster occur?
- Does my policy cover things outside the home – for example, porches, decks, detached garages, outdoor appliances, or outdoor furniture?
- Do I qualify for any discounts or reductions compared to last year?
- Do I need to update my policy to reflect [an addition, a pool, adding a security system, etc.]?
- Do I require any special kinds of coverage to accommodate the potential for natural disaster? (Earthquakes, flooding, etc.).
- If I work from home, do I need to make special changes to my policy that reflect that my home is also a business?
- Do I need to change my business coverage to reflect employees or an increase in revenue?
Remember, it’s much better to be prepared for the worse and have coverage when you need it, rather than finding out you’re not covered when the worst actually occurs.