5 Signs You Should Review Your Insurance Coverage
Insurance is an important part of any financial plan that too often goes overlooked. Insurance acts as a safety net in case of damage or financial hardship. If something happens to you, your family, home, or car insurance is there to help you.
As your situation changes, your insurance needs change too. That is why it is so crucial to review your insurance coverage. You may need more or less coverage, or even simply a different type. Or perhaps you may even become eligible for discounts.
A review of your insurance can help you see if your coverage is still a good fit for you. Here are the top five signs that you need an insurance review.
Family Changes
A change in your family is one of the biggest signs you need to review your insurance coverage. Family changes impact both your living and financial situation. This means that they can affect a lot of other aspects of your life too.
Plus, you always should make sure your family is taken care of in the event of some emergency. Your family may be relying on you.
Specific family changes to watch out for include:
- Marriage or divorce
- Birth or adoption of child or grandchild
- Significant changes in a family member’s health
- Change in living situation ex. a child moving in or out
- Aging parents that need care
Housing Changes
Your home has a large impact on your finances. Anytime a major change occurs with your home you should review your coverage. Even something like a renovation can change your home’s value. This could lead to needing more coverage or even being offered discounts.
Changes in your home that may impact insurance include:
- Buying or refinancing a home
- Large renovations
- Changing your address
Vehicle Changes
Auto insurance is one of the coverages that most people have. Because most people drive on a daily basis, it is very important to have auto insurance that meets your needs. Be sure to shop around frequently. Even a change in your living situation could mean you need different coverage.
Watch out for vehicle changes including:
- New car
- New driver
- Change of living situation
Financial Changes
Changes in your financial situation are a big sign that you should review your insurance policies. Situations such as inheritances or pay raises could mean you need to reevaluate your coverage. In addition, a decrease in pay or a change in spending could also be a signal that your financial situation is about to change.
You may need extra protection when your situation is facing a large change. Look for changes in your finances including:
- Inheritance
- A significant raise or decrease in pay
- A significant change in spending
It’s Been a Year Since Your Insurance Last Review
Although your situation may not have changed drastically in a year, it is still worth glancing over your policies. There may be a change you hadn’t thought of. Or maybe you became eligible for a new discount. Reviewing your policy once a year will help ensure you won’t have any surprises.
If you’ve experienced one of these major life changes, or if it’s been a year since your last review, you should look over your insurance coverage. Your local agent can help determine if you have the coverage that is the best for you.
