What Do You Need to Consider While Performing an Annual Insurance Review?

Annual insurance review checklist

The New Year is a time when many people reflect and set goals on what they want to accomplish over the next 12 months. It is also a great time to perform an annual insurance review. Reviewing your insurance is important because it allows you to see if you need to make any changes to your existing policy. Perhaps things have changed in your life and you would like to research new policies. This is especially true with your home insurance.

Here are some things to consider while you perform an annual insurance review.

  • Benefits

As a homeowner, it’s important to create an annual insurance review checklist. You should review your policy to determine if the coverage is still satisfying your needs. You want to avoid having a gap in your coverage. If you have a gap in your coverage, then you will be financially responsible if an accident occurs and your home suffers damage. Reviewing your insurance policy allows you to ensure that your home and personal items are protected. Take inventory of everything in your home. This will help you in the event you are a victim of theft. Having an annual insurance review also gives you a chance to see if you qualify for any special discounts regarding your policy.

  • Renovation Project

If you are planning a renovation project in the next few months, an annual insurance review checklist can help you understand its implications on your existing insurance policy. Perhaps you will find that you need to upgrade different parts of your policy to have full coverage while working on the project. Construction costs vary every year. Also, some improvements to your home may change its status from standard to custom. As part of your annual review, make sure that you provide a reasonable estimate of how much it will cost to complete the project. This will help determine how much coverage you need.

  • External Factors

As you review your insurance policy, consider external factors. Perhaps you plan to complete an extensive landscaping project during the summer. Maybe you want to install some outdoor appliances around your home. Any major exterior changes to your property will indeed require a home insurance policy upgrade. Perform an annual insurance review before investing a lot of money into new equipment.

  • Water Damage

A flood can cause severe damage to your home. Amend your home insurance policy to provide additional coverage if your personal items are damaged due to a flood. If you add backup coverage to your policy, it will cover any water damage to your personal items and the interior of your home, including carpets and walls.

  • Luxury Items

As you perform an annual insurance review, you may find that your existing coverage for personal items needs to be upgraded. If you have expensive luxury items, your current policy may not be enough to fully cover those items. Extended coverage can protect valuable items such as expensive furs, antiques, jewelry, and memorabilia. If you are starting a home business, you’ll also need to amend your policy to protect your business if damages occur.

  • Research Special Discounts

Researching whether you qualify for any special discounts should be at the top of your annual insurance review checklist. This is the time to make sure that you receive all of the discounts you qualify for. You may find you are entitled to a discount based on some recent installations to your home.

Performing an annual insurance review will help you protect your investments. The experts here at Udell Family Insurance are here to make sure that you have the right insurance in place. We are ready to assist you with all your coverage needs today.

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