Why an Annual Insurance Review Is So Important
Life changes—and so should your insurance. While it’s easy to “set and forget” your insurance policies, doing so could leave you underinsured, overpaying, or missing out on important protections.
That’s where an annual insurance review comes in. It’s a simple, often overlooked step that can make a big difference in your financial protection and peace of mind.
Here’s why scheduling a yearly insurance review is so important:
1. Your Life Changes—Your Coverage Should Too
Major life events can impact your insurance needs. Have any of these happened in the past year?
- Bought a new car or home
- Renovated your property
- Got married or divorced
- Had a baby or adopted a child
- Started a home-based business
- Retired or changed jobs
If so, your coverage may need to be adjusted to reflect these changes. An annual review ensures your policies keep up with your life.
2. You May Be Overpaying
Insurance rates and discounts change over time. You may qualify for savings you’re not currently receiving, such as:
- Claims-free discounts
- Bundling home and auto
- Security system or safety upgrades
- Loyalty or renewal credits
During your review, your agent can identify cost-saving opportunities—without sacrificing coverage.
3. Protect New Valuables
Did you buy jewelry, electronics, artwork, or other high-value items this year? Standard homeowners policies have limits on personal property coverage. An annual review is the perfect time to:
- Update your home inventory
- Add endorsements (also called floaters) for valuable items
- Ensure full replacement cost coverage
4. Understand Your Coverage Better
Insurance can be complex. Many people don’t fully understand what’s covered—and what’s not—until they have a claim. During your review, your agent can:
- Explain your policy in plain language
- Clarify deductibles, exclusions, and coverage limits
- Recommend adjustments based on your lifestyle and goals
This proactive conversation can help you avoid surprises later.
5. Prepare for the Unexpected
Severe weather, inflation, and supply chain disruptions can all impact rebuilding costs. If your home’s coverage hasn’t been updated recently, you might be underinsured. A review ensures your dwelling and liability limits are adequate in today’s environment.
6. Stay Compliant With Mortgage or Lease Requirements
If you’ve refinanced your mortgage or changed landlords, your policy may need to be updated with the correct mortgagee or additional insured. An annual review keeps your documentation accurate and compliant.
Don’t Wait Until It’s Too Late
Insurance is a key part of your financial foundation. Taking 30 minutes once a year to review your policies can help you:
- Save money
- Avoid coverage gaps
- Gain peace of mind