When was the last time you thought about your insurance? Any kind? Most people don’t think about insurance, whether car, home, or business, except at different times including the purchase of a new car or adding a teen driver, buying a home, when a baby arrives, or when starting or growing a business. Some people may think about their insurance when it renews, and everyone thinks about it if when they have a claim.
I understand that insurance isn’t top of mind with most people, nor should it be. People want to buy it and not have to think about it. What is important, though, is to think about it once every year or two, which is why an insurance review should take place.
An insurance review consists of a conversation between the agent and the client. It can be a face to face meeting, a phone conversation, or even take place over email. The purpose of this exchange is to uncover what life changes have occurred and confirm you are adequately insured. Neither the agent, nor a client, wants to discover a gap in coverage after a potential claim. To prevent this a negative surprise, there are several items which should be considered and discussed.
There are several reasons why increasing liability coverage on both the car and home policies would be smart including, growth in the household income, a job promotion, or starting a business. These may also indicate it’s time to get an umbrella policy too. Buying a more expensive car or truck may call for higher property damage and liability coverage.
Installing a swimming pool or trampoline, may call for adding liability coverage and increasing coverage on separate structures on the home policy. If you’ve bought an anniversary ring, other jewelry, or started collecting artwork or guns, you may need to add personal articles coverage on the home insurance, or on a personal articles policy.
There are times when less coverage may be needed including removing a collision deductible on a car that’s paid off and it’s residual value are such it makes sense to do this. There are instances when the loss of a job, retirement, or becoming empty nesters may also dictate less coverage.
The arrival of children is a popular time for parents to consider their life insurance needs. Having aging parents or moving into a pre-retirement phase of life may raise the need for long term care or disability insurance. Starting your own business may also call for life, long term care, disability, and even health insurance.
Ideally, your agent will initiate a review, but if they don’t, then call or email them. Most agents enjoy having involved clients! There is no one size fits all when it comes to insurance, but touching base with your agent every two years, does produce a peace of mind you’re covered in a way that fits you today. After all, there’s a real good chance your life situation has changed in the past few years. What questions or comments do you have? Share them with me on our Google +, Facebook, or LinkedIn pages. I’d love to hear from you!