Reasons to Check Your Insurance Coverage Regularly
Insurance is one of those financial products that doesn’t always keep up with your needs. The coverage you purchase one day may not be what you need four or six months later. That's why it's a good idea to check your insurance coverage regularly - every six to 12 months - and make sure it still fits your needs.
If your car or home insurance policy is up for renewal or if you've recently reached a milestone in your life, it's a good idea to review your coverage to make sure it's still applicable and relevant.
Even though life insurance may not have an official renewal date, it's important to look over the contract every now and then to ensure the amount of coverage is still keeping your most valuable assets protected.
Here are four really good reasons to check your insurance coverage:
You experienced a life changing event
It's a good idea to check your insurance coverage when anything in your life changes. Life milestones such as a new job, a wedding and a baby are all good reasons to check your insurance coverage, especially your life insurance coverage.
The last thing you want is a policy that no longer meets your needs or is out of date and doesn't include new family members as beneficiaries. If a new job comes with a raise, you will want to revisit the amount of life insurance and possibly increase the value to cover your new income.
Because we acquire stuff over time
If the value of your belongings changes, look over your home insurance policy to ensure all your stuff is still covered. If you acquire new furniture, electronics, and personal items, you may need to increase the value of the loss and damage coverage on your home insurance policy.
If you've recently added expensive art, furs, or jewelry into your home, you should inform your insurance company and purchase extended coverage (usually referred to as valuable items insurance).
As a general rule of thumb you should check your insurance coverage every year upon renewal to ensure you have enough coverage – and to make sure you don't have more coverage than needed because that would be a waste of money.
Your personal information changes
As mundane as it sounds, you need to stay on top of the details in your insurance policy to make sure your personal information is up to date. A small error in your insurance policy can make any claims null and void. Look over the contract to verify that your name, age, contact information, address and other personal information is accurate.
If you think you're overpaying
If your home or auto insurance policies are up for renewal, shop around to see if the premium costs are still competitive. Just because you've been with one insurance company for a long time doesn't mean you have to stick with them forever. Money talks so do your homework to ensure you have the coverage you need at the right price.