Key Reasons to Review Your Insurance Policy Annually
New year comes with new life changes โ and your insurance policy needs to keep pace with them to ensure youโre properly protected at all times. You shouldnโt wait until itโs time for your annual insurance review. Whether youโve switched jobs, moved to a new home, or recently completed home renovations, itโs crucial to ensure that your insurance coverage reflects your current life.
With less than half of Canadians feeling confident that they understand their insurance policies, it may seem like a daunting process. But updating your policy shouldnโt be complicated โ that is what your insurance broker is there for. They can help simplify language, make recommendations to ensure you are protected, and identify ways to help you save money on your premiums.
Why Regular Policy Reviews Are Essential
As life evolves, so do your insurance needs. For example, a change in employment, marital status, or family size can significantly impact your coverage requirements. Failing to update your policy after major changes could leave you underinsured, paying for coverage you no longer need, or worse – exposed to risks you didnโt anticipate.
Key Life Changes That May Affect Your Insurance Needs
1.New Job or Career Change - Longer commutes or business use of your vehicle may increase your auto insurance premiums. If you're working from home, you might need to update your home insurance to cover work-related property or equipment.
2.Marital Status - Marriage or divorce often requires updating your home and personal liability insurance to reflect changes in property ownership or shared assets. Be sure to adjust beneficiaries and coverage limits as needed.
3.New Home or Relocation: Moving to a new home means updating your home insurance to ensure the new property is properly covered. Donโt forget to update your vehicle address with your insurer, as rates can vary based on location. Regional risks like flooding or earthquakes may also affect your coverage needs.
4.Changes in Health or Lifestyle: Health changes can impact your auto insurance premiums, especially if your mobility or activity level changes. If you acquire medical equipment at home, your home insurance may need an update to cover these items.
5.Home Renovations: Renovating your home often increases its value, so review your policy to reflect this. Ensure you have adequate liability coverage for any new risks, such as new structures like pools.
Key Questions to Ask Your Broker When Reviewing Your Policy
The start of a new year is the perfect time to schedule an insurance review with your broker to ensure your policies align with your current needs. Here are some key questions to ask to get the most out of your review:
1.Are my coverage limits adequate?
Ask if your current coverage limits reflect your present situation. For example, if you've upgraded your home or purchased new assets, your homeowners' insurance might need adjustment. Similarly, if youโve acquired high-value items or made other significant purchases, ensure theyโre included in your coverage.
2.Do my deductibles need updating?
Itโs important to review your deductibles as they can impact your out-of-pocket costs during a claim. Ask your broker if your current deductible is still appropriate for your financial situation, especially if your homeโs value or contents have changed. Lower deductibles can increase your premiums, but they might be worth considering for better peace of mind.
3.Is my liability coverage sufficient?
If your life circumstances have changed - such as moving to a new home, getting married, or starting a home business - check if your personal liability coverage is enough. These changes could increase your exposure to risks, and you may need to adjust your limits accordingly.
4.Do I have the right coverage for home renovations or new additions?
If youโve made or are planning any renovations (like adding a pool or expanding your home), ask if your homeowners' insurance needs to be updated. Renovations can significantly impact your propertyโs value, and it's important to make sure the coverage reflects this.
5.Am I eligible for new discounts or offers?
Ask your insurance broker if you qualify for any discounts based on your life changes - such as usage-based driving offers, safe driving discounts, or bundling home and auto policies.
Conclusion
Reviewing your insurance policies regularly is an essential activity to ensure the right coverage and price. Life goes on changing, and so should the needs for which insurance is required. Reviewing once every year allows you to spot coverage gaps, alert you for possible limit adjustments, and with luck, help save some money on premiums.
So, don’t wait for the situation to worsen. Get your insurance review done with the help of A-Kan Insurance expert insurance brokers. Our experienced brokers will be by your side to ensure you are secure and worry-free.
