Global Courant
Most people contact their insurance broker or insurers when there is a major life event that necessitates new or revised risk coverage – perhaps when they buy a new home or it’s time to trade in the old car. However, far fewer people remember to review their insurance on a regular basis or when more subtle changes occur in their coverage requirements.
By checking your insurance regularly, you can ensure that your coverage is what you expect it to be in the unfortunate circumstance of having to make a claim. It also helps you make informed decisions about coverage and be proactive about minimizing your insurance costs.
There are many different circumstances that could potentially change your coverage requirements and lead you to call an insurance professional for an assessment. The examples below indicate some instances where you may wish to review your cover:
- Renovations – Doing renovations on your home will likely increase its value as well. Whether it’s a new kitchen, bathroom, pool or even expensive landscaping, don’t forget to check your policy limits to make sure they remain adequate in the event of an insured loss. If you’ve recently renovated your basement, keep in mind that chances are your water damage insurance needs to be reviewed.
- You have accumulated possessions – Have you done a home inventory lately? Most people have more personal belongings than they think. Estimating the total value of your content is essential to ensure your limits are adequate.
- You have purchased a valuable item – Remember that some of your personal belongings need to be planned to be properly covered. Jewelry, antiques, collectibles, wine collections, and art are some examples of pieces that may need additional coverage.
- New covers are available – The insurance industry regularly adapts to changing market conditions and provides coverage in areas that did not exist before. For homeowners, insurance for land water damage and home repair issues (such as broken furnaces) has recently become available from some insurers in some areas. In addition, legal expenses insurance, travel insurance and pet insurance are available from brokers who want to cover more of your risk and insurance needs.
- Laws change to give you more or less choice – Changes in car accident benefits mean you need to review your choices.
- You are eligible for additional discounts – Changes in your personal circumstances may affect your entitlement to policy discounts. For example, if you install an alarm system, you probably qualify for a discount on your homeowners policy. If you use winter tires on your vehicle, many insurers offer a discount on your car insurance. If you are over the age of 50-55, you may be eligible for adult driver discounts.
- If you change jobs and have a shorter commute – You should report this to your insurance broker, as less driving is generally associated with lower risk and cheaper premiums. If you have a particular occupation, you may also qualify for lower insurance rates.
- You started a home business – For other uses of your home, other than strictly residential, business insurance may be necessary to properly cover liability risks.
- Your personal circumstances change – If you get married or have children, you may want to review your coverage to make sure your coverage levels are sufficient to take care of your dependents in the event of an accident.
- Your child will receive a driver’s license – Always check whether your child can be listed on your policy. Insuring them to drive is often the cheapest option. If they get their own car, you will probably also qualify for a multi-car discount.
- If your child is moving to attend college or university – Check if your homeowner’s coverage can be extended to protect your child’s belongings while he is in school. It can be more beneficial than buying self-employed renters insurance.
- If you have not had an insurance assessment for more than a year – Your coverage levels may be out of date. An important example of this is your home insurance. Property values and replacement costs can easily add up to the point where your existing coverage limits don’t allow for a full rebuild of your home in the event of a total loss.
Taking the time to talk to your insurance professional is always time well spent. Even if you don’t save on your insurance costs after the call, there’s no substitute for the coverage you expect when a claim becomes necessary. Since most insurance policies have a one-year term, it’s a good idea to consult your insurance professional before renewing your annual coverage.
The importance of insurance assessments
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