Review Your Policies When They Renew

Periodically review your insurance needs with your agent.

You count on your independent insurance agent to guide you through the purchase of personal insurance coverage tailored to meet your needs. But after the initial purchase, how often do you re-examine your policies? Your independent agent can also help you evaluate coverage periodically as your needs change.

Review at Renewal

Renewals are a great opportunity to verify that you are properly insured. When you receive your renewal information from your agent or carrier – usually several weeks prior to the policy renewal date – check your coverages to make sure they’re still appropriate to your situation. Consult with your agent to discuss all the changes that took place during the year and ask your agent to evaluate if it’s necessary to update your insurance program.

Consider these questions at renewal:

• Has something about your property changed? Maybe you renovated a room, purchased luxury appliances or added a swimming pool, home theater or other room. You’ll want to make sure you’re adequately covered.
• Did you sell the stamp collection you had listed separately on a personal items policy? Or did you purchase a violin for your child to play in the orchestra? Maybe you purchased cameras, computers, guns or jewelry…These are events that warrant an insurance review.
• Did a son or daughter graduate from high school and head off to college? If your child is not taking a car to college and will no longer have regular access to your family vehicle, you may be able to save money on your auto premium during the time that child is away from home.
• Do you have concerns about your personal liability? Consider adding an umbrella policy. For a reasonable premium, an umbrella policy adds worldwide liability coverage above and beyond the limits provided in your primary policies. In some cases, the umbrella may even provide coverage for things that might not be covered in your primary policies.

What qualifies you for a preferred policy?

Your agent knows which insurers offer a policy that is appropriate for you. You might be a candidate for a carrier’s preferred policies if you:

• take pride in your possessions and maintain them at a high level
• understand the need for increased home and auto liability limits and appreciate the benefits of personal umbrella policies
• recognize the purpose of insurance is to protect you from situations that result in significant financial distress, and are comfortable accepting a portion of the liability through a higher deductible
• understand the importance of being properly insured at all times and have never had a lapse in coverage

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.