How to Review Your Insurance Policies at Annual Renewal

When is the last time you reviewed your insurance program?

For most of us, insurance considerations come into play once a year. Maybe we shop for a different solution, explore discounted rates or increase existing coverage to protect new assets. But outside of the basic maintenance, your insurance policies can begin to collect dust and possibly leave you under or over insured.

As you finish summer and head into fall, consider a full-scale review of your insurance. You may be surprised at the opportunities available.

Policy Renewals

Most policy renewals take place annually or semi-annually. At each renewal, policyholders receive a declaration page, information on the details of their coverage and a new proof of insurance. Though you can renew your policy at any time, scheduled renewals will serve as a timely reminder to stay up to date on your coverage.

This does not mean, however, that you should wait until your renewal date to consider your options.

If you are planning a home improvement project, plan ahead and touch base with your insurance provider. By doing so, you can secure the best product and price to meet your needs. If you haven’t evaluated your insurance recently, consider the following factors and possible updates to your current plan.

Value Added

Making improvements to property and assets is a good reason to re-evaluate your insurance coverage and ensure all items are fully covered. These may include, but are not limited to, the following:

• Updates that add value to the home, such as new flooring, a remodeled kitchen or a swimming pool.
• Acquiring new valuables, such as electronics or equipment, valuable artwork, an engagement ring or family heirlooms.
• Improvements made to your vehicle, such as a fresh paint job or other high-ticket customizing changes that could increase the value of your vehicle.
• Purchasing a FitBit or other health-tracking device, weight loss or improved overall health assessment from your physician, which may lower your life insurance costs.

Safety Improvements

Being proactive and implementing risk management or protection methods for your assets may lower your insurance premiums, such as:

• Minor updates, such as installing dead-bolt locks or a security system, can earn you a 5% discount (or greater) on your homeowners’ policy. Furthermore, some carriers will extend nearly 15-20% discounts to households that install in sophisticated surveillance systems.
• Renovations to your home’s structure, such as an addition or new roof, can also add credits to your policy and save you money.
• Updating your locks or alarm system to your vehicle can add similar benefits.

Consolidation

If you sell or gift valuable assets, make sure your insurance is updated to remove any excess coverage. Examples include:

• Passing on family heirlooms or other valuables may eliminate specific coverage needs. This is especially true if you own a large, highly valuable collection of artwork or automobiles that require large extensions of coverage.
• If you’re in the process of downsizing, such as selling your home, vehicle, or other property, your insurance should change considerably.

Once you are through the initial policy period, your insurance rates should remain consistent through the next renewal.

Life milestones, such as change of age, marital status, acquiring dependents, and other factors, will alter your needs from year to year. When it comes to property and asset changes, it’s on you to ensure your insurance company has all information needed to guarantee adequate coverage.

Carriers typically reach out to policyholders 30-60 days in advance of renewal date. Take that reminder as an opportunity to shop around and ensure you’re getting the best insurance rates.

In the midst of major life changes, it’s easy to ignore your insurance program. However, sticking with the same policy year-over-year will not always be the best option from a cost or coverage standpoint.

The Convenience of an Independent Agent/Broker

Independent insurance agents and brokers have access to multiple carriers, and can shop the market for the best fit for your insurance and risk management needs. Without being tied to a particular carrier or product, independent partners like Gold Stag are able to focus on what matters most—expert, honest consultation.