When there is an important event in their life that requires new or revised coverage, most people contact their underwriters or insurance brokers. Fewer people remember to check their insurance regularly or to make subtle changes to their coverage requirements.
Regularly reviewing your insurance policy will help ensure that your coverage is as good as you would like it to be, should you ever need to file a claim. This helps you make informed decisions about your coverage and to take proactive steps to reduce your insurance costs.
You may need to review your coverage in a variety of circumstances. These are just a few examples of situations where you might need to review your coverage.
- Renovations- When you renovate your house, you’re likely to increase its value. You should always check the limits of your insurance policy to make sure they are adequate in case you lose your home. It is likely that you need to review your water damage insurance if your basement has been renovated recently.
- You have been collecting possessions – Did you do a home inventory recently? Many people are more proud of their personal possessions than they realize. It is important to estimate the value of all your possessions in order to ensure that your limits are appropriate.
- If you have purchased a valuable item Make sure to schedule your personal belongings to be covered. Additional coverage may be required for jewellery, antiques and collectibles, as well as wine collections and art.
- There are new coverages available. Insurance industry adapts frequently to market conditions and offers coverage where it does not have coverage previously. Some insurers now offer homeowners insurance that covers water damage to the home and repairs (such as furnaces breaking) in certain areas. Brokers can also offer legal expense insurance, travel insurance and pet insurance to help you cover more of your insurance risk.
- You have more or less options– The changes to automobile accident benefits means you need to review your options.
- You may be eligible for additional discounts. Personal circumstances can affect your eligibility for discounts. You may be eligible for a discount on your homeowner insurance policy if you have an alarm system installed. Many insurers will offer discounts for snow tires. You may be eligible for discounts for mature drivers if you reach the age of 55 or 50.
- Change jobs or have a shorter commute Inform your broker. Driving less often correlates with lower premiums and higher risk. You may be eligible for lower rates if you work in a specific job.
- Your home business has been started – Any other use of your home than residential may require insurance to cover liability risks.
- You may have changed your personal circumstances – It is a good idea to review your insurance to make sure your coverage covers your dependents in the event of an accident.
- Get a driver’s license for your child – Always verify to make sure your child is included in your insurance policy. This is the most affordable option to insure them to drive. You may also be eligible for multi-car discounts if they own a car.
- Your child may move away to college or university. Find out if you can extend your homeowner’s coverage to protect your child’s property while they are away. This may be cheaper than buying separate tenants insurance policies.
- You may have coverage gaps if you haven’t had your insurance reviewed in over a year. Your home insurance is a key example. Your home insurance policy limits may not cover the cost of total reconstruction of your house if your property values or replacement costs rise enough.
It is worth taking the time to talk to an insurance professional. Even if the call doesn’t result in a savings on your insurance, it is still a good idea to have the coverage you need when you need it. Most insurance policies last for one year. It is best to talk to an insurance professional before renewing your annual coverage.