Reviewing insurance coverage might not be at the top of your to-do list, but it should be. As your life evolves, your insurance needs change, too. That policy you purchased years ago might not provide the right protection for your current situation, potentially leaving you vulnerable to unexpected financial hardships.
At Wawanesa, we believe that regular insurance reviews are important for maintaining proper protection. In this article, we'll explain when and why to conduct these reviews, and how our team can help ensure your coverage keeps pace with your life changes.
Why Regular Insurance Policy Reviews Matter
An insurance policy review isn't just about finding savings (though that's often a nice benefit). More importantly, it's about ensuring you have the right protection for your current life circumstances.
Protection That Evolves With Your Life
Your insurance needs at 25 are very different from your needs at 35, 45, or beyond. Marriage, children, home purchases, career changes, and retirement all impact the levels of coverage you need. A regular review of insurance policies helps align your protection with your current reality.
Avoiding Coverage Gaps
One of the biggest risks of outdated policies is underinsurance. If you don’t review your coverage, you might discover too late that your policy doesn't fully cover your home's rebuilding cost or that you lack sufficient liability protection. These gaps can lead to significant out-of-pocket expenses.
Identifying Cost-Saving Opportunities
On the flip side, you might be paying for coverage you no longer need. Perhaps you're still paying for jewelry protection on items you no longer own, or you haven't applied discounts you now qualify for. Reviewing insurance regularly helps eliminate unnecessary expenses.
Review Your Insurance Coverage to Streamline Future Claims
Up-to-date policies with accurate information make the claims process smoother. When you take the time to assess your current coverage, you'll have fewer surprises during already stressful claim situations.
When to Review Your Auto Insurance Policy
Your auto insurance should be revisited at specific intervals and after certain life events:
Annual Review at Renewal
It’s recommended that policyholders conduct a thorough review of their insurance annually. This timing allows you to evaluate your coverage limits, deductibles, and available discounts. And don’t worry, this is not a complicated or time-consuming process. Call us to have one of our agents review your policy with you over the phone.
After Vehicle Changes
Any time you purchase, sell, or trade in a vehicle, you should update your insurance policy information. Newer vehicles typically require different coverage than older ones, and the value of your car directly affects your insurance needs.
When Drivers Change
Adding a teen driver, removing a driver who's moved out, or changes in marital status all impact your auto insurance. These significant life events should trigger an insurance review to ensure proper coverage and applicable discounts.
Moving or Changing Jobs
Moving to a new address or starting a new job can impact your commute distance and significantly affect your rates and coverage needs. If your driving habits have changed substantially (perhaps you're now working from home or maybe the reverse is true and you’re going into the office more regularly), let us know so we can update your information accordingly.
When to Review Your Homeowners Insurance
Your home is likely your largest investment, so your coverage levels are especially important:
After Home Improvements
Renovations and upgrades increase your home's value and rebuilding costs. Whether you've remodeled your kitchen, added a bathroom, finished your basement, or installed a pool, these changes should prompt an insurance review to ensure your dwelling coverage reflects these improvements.
When Property Values or Building Costs Rise
Even without renovations, rising construction costs or property values in your area can leave you underinsured. An annual review can help ensure your coverage keeps pace with these external factors.
After Acquiring Valuable Items
Standard homeowners policies have limits on certain categories of belongings. If you've purchased valuable jewelry, art, electronics, or collectibles, you should update your personal property information to protect high-value items.
Following Safety or Security Upgrades
Installing security systems, smoke detectors, or water leak detection systems might qualify you for discounts. These improvements call for an insurance policy review to capture potential savings.
When to Review Your Renters Insurance
Renters face unique insurance considerations that require regular attention:
When Moving to a New Rental
Each rental property has different risk factors based on location, building age, and security features. When you move, it's time to review your insurance coverage to ensure it aligns with your new living situation and address.
Following Major Purchases
As you acquire more possessions or upgrade to more expensive items, your personal property coverage needs may change. Major purchases should trigger a review just to ensure your belongings are adequately protected.
Tips for Updating Your Insurance Policies
When you update insurance policy information regularly, you’re not only making sure you have enough coverage, but that you’re getting the best rates too.
Create a Life Events Checklist
Keep a running list of significant changes that might affect your coverage needs:
- Address changes
- Vehicle purchases or sales
- Home renovations or improvements
- Marriage, divorce, or children
- Major purchases
- Retirement
Communicate With Your Insurance Provider
Don’t wait until your policy is up for renewal to make updates. It’s a good time for an insurance policy review if something significant changes. Contact your insurance provider to ensure your coverage stays up to date and continues to meet your needs.
Ask About New Offerings
Insurance products evolve over time. During your call, ask about new coverages, endorsements, or bundle opportunities that might better protect your changing needs.
Document Your Belongings
Maintain an updated inventory of your valuable possessions with photos, videos, and receipts. Store this information securely in the cloud or on file, where it can be accessed if needed for a claim.
Keep Your Protection Current
Life doesn't stand still, and neither should your insurance coverage. By building regular insurance reviews into your financial routine, you ensure that your protection evolves along with your changing needs.
At Wawanesa, we're committed to helping our members maintain the right coverage at every life stage. We make reviewing insurance simple and straightforward, so you can have confidence that you're properly protected.
Don't wait until renewal time if you've experienced a major life change. Contact us today for a comprehensive insurance policy review. Our team is ready to help ensure your coverage keeps pace with your life.
FAQs About Insurance Policy Reviews
Can reviewing my policy help lower my premium?
Yes, many members discover savings during their insurance review. Policy reviews often identify new discounts, bundling opportunities, or unnecessary coverage that can be adjusted.
Is it better to work with an agent or update my policy online?
While online tools provide convenience for simple changes, nothing replaces a conversation with a knowledgeable agent for a comprehensive insurance policy review. Insurance agents can explain coverage options, identify potential gaps, and recommend protection based on your specific situation.
What's a good time of year to review all my policies?
While there’s no set time that’s best for everyone, many people find it helpful to review their insurance policies around their renewal dates, when updated documents are sent out. Others prefer a consistent time each year, such as the beginning of the year or tax season, when they’re already focused on organizing their finances.
Does reviewing my policy affect my rate?
Simply reviewing your policy with us won't increase your rate. Policy reviews are free, confidential conversations about your coverage. While making actual coverage changes might affect your premium (either up or down), the review itself has no impact on what you pay. The key here is to check that you’re not underinsured and that you’re using every money-saving discount available to you.
