Why Do You Need A Yearly Review?
The Benefits of an Annual Insurance Review
Many Business owners and Home owners purchase an insurance policy when they first move in, but they may not understand the importance of periodically reviewing it or reassessing their needs. It’s an oversight that can ultimately lead to a gap in their coverage.
For instance, you may have insured your home or business for $200,000 when you first bought it. A decade later, it may cost $300,000 to rebuild. That’s a $100,000 gap in coverage—which could leave you without the proper resources to rebuild in the event of a loss.
A business or home renovation or upgrade is another reason you may want an insurance review. It can help ensure that your property and belongings are fully protected, and that your coverage is keeping up with your current needs. Everything from new office equipment and furniture to a kitchen upgrade can affect the value of your family’s home, and may even qualify you for additional discounts on your insurance policy.
One way to evaluate your needs is to conduct a business or home inventory, a detailed catalogue of all your possessions.
Property and Casualty Insurance Review
For property and casualty insurance, take a look at your total coverage relative to what you own, and to your net worth. As your net worth grows, the amount of insurance protection you have should also increase. If someone were to be injured on your property and sue you, would your coverage hold up? It helps to know what items are excluded from coverage. Best to review this with your insurance agent and adjust coverage as needed. If you run a business out of your home, be sure to bring this up to your agent. Yes, additional coverage may be needed, but it is better to pay a small premium to have things covered than to experience a devastating uncovered loss.