Most people reach out to their insurance brokers or
underwriters when there is a significant event in their lives that necessitates
new or revised risk coverage - perhaps when they purchase a new home or it's
time to trade-in the old car. However, far fewer remember to review their
insurance at regular intervals or when more subtle changes to their coverage
requirements occur.
Reviewing your insurance regularly helps ensure your
coverage is what you expect it to be in the unfortunate circumstance that you
need to file a claim. It also aids in making informed decisions regarding
coverage and being proactive about minimizing your insurance costs.
There are many different circumstances that could possibly
change your coverage requirements and prompt a call to an insurance
professional for a review. The examples below identify some of the instances in
which you might want to review your coverage:
Renovations - If you perform renovations to your house,
it is likely that you are also increasing its value. Whether it's a new
kitchen, bathroom, pool, or even expensive landscaping, remember to check your
policy limits to ensure they remain adequate in case of an insured loss. If
you've recently renovated your basement, also note it is quite likely that your
water damage insurance needs to be reviewed.
You've been accumulating possessions - Have you done a
home inventory lately? Most people have more personal possessions than they
think. Estimating the total value of your contents is vital to helping ensure
your limits are adequate.
You've purchased a high value item - Remember that some
of your personal possessions have to be scheduled to be properly covered.
Jewellery, antiques, collectibles, wine collections, and art are a few examples
of pieces that may require additional coverage.
New coverages have become available - The insurance
industry frequently adapts to changing market conditions and offers coverage in
areas that it has not in the past. For homeowners, insurance for overland water
damage and home repair issues (such as broken furnaces) have recently become
available from some insurers, in some areas. In addition, legal expense
insurance, travel insurance, and pet insurance are available from brokers
looking to cover more of your risk and insurance needs.
Laws changing to give you more or less choice - Changes
to automobile accident benefits mean you should review your choices.
You become eligible for additional discounts - Changes
in your personal circumstances may affect your eligibility for policy
discounts. For example, if you install an alarm system you are likely eligible
for a discount on your homeowner policy. If you use snow tires on your vehicle,
many insurers offer a discount on your car insurance policy. If you pass the
age of 50-55, you may become eligible for mature driver discounts.
If you change jobs and have a shorter commute - You
should report this to your insurance broker as driving less typically
correlates to lower risk and less expensive premiums. If you have a certain job
occupation, you may also be eligible for lower insurance rates.
You've started a home business - A different use of
your home, other than strictly residential, may require business insurance to
properly cover liability risks.
Your personal circumstances change - If you get married
or have children, you may want to review your coverage to ensure your coverage
levels are adequate to look after your dependents in case of an accident.
Your child gets a driver's licence - Always check to
see if your child can be added to your policy. It is often the least expensive
option for insuring them to drive. If they get their own car, you are also
probably eligible for a multi-car discount.
If your child moves away to attend college or university - Check
to see if your homeowners coverage can be extended to protect your child's
assets while away at school. It may be more cost-effective that purchasing a
standalone tenants insurance policy.
If you haven't had an insurance review in more than a year - Your
coverage levels may be out of date. A key example of this is your home
insurance. Property values and replacement costs can easily rise to the point
that your existing coverage limits do not allow for the total reconstruction of
your home in the case of a total loss.
Taking the time to speak to your insurance professional is
always time well spent. Even if you don't save on your insurance costs after
the call, there is no substitute for having the coverage you expect when a
claim becomes necessary. Since most insurance policies are for the term of
one-year, it is a good idea to speak to your insurance professional before
renewing your annual coverage.
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