The start of a new year is a perfect time for reflection and renewal – not just for your personal goals but for your financial health, too. Among the many tasks we tick off in January, there's often one we tend to overlook: reviewing our insurance policies.
An annual insurance review checklist can save you money, protect your assets, and keep your peace of mind intact. Sounds like a win-win, right?
Taking the time to evaluate your insurance at the beginning of the year isn't just about ensuring you're covered in the event of a crisis – it's also about making sure your coverage is up-to-date with your life and changing needs. Here's a step-by-step guide to help you tackle your New Year's insurance review like a pro.
Life happens, and it happens fast. A lot can change in the span of a year. Perhaps you moved into a new home, added a teen driver to your car insurance, or even welcomed a new member to your family. These changes can have a significant impact on your insurance needs.
An annual review ensures you're not underinsured or overinsured. Being underinsured can expose you to big financial risks, while being overinsured means you're probably paying more than you need to. Your insurance should be aligned with your current lifestyle, goals, and assets. No more, no less. Taking stock at least once a year helps you stay ahead and avoid any surprises.
Beyond updating your coverage, this review can also reveal opportunities to save. Insurance companies adjust rates constantly, and you might discover discounts you weren't aware of or spot areas where bundling policies could lower your premiums.
When reviewing your insurance, it helps to have a system in place. That's where a trusty checklist comes in handy. Here's what you should definitely include:
Homeowners or Renters Insurance
Health Insurance
Life Insurance
Disability Insurance
Umbrella Insurance
If you have significant assets, an umbrella policy can provide an extra layer of liability coverage. Re-evaluate your risk and determine if your umbrella policy limits are sufficient.
Business or Self-Employment Insurance
Entrepreneurs and freelancers should consider their professional liability coverage and business property insurance. New services, partnerships, or office setups might mean it's time for an update.
Now that you've reviewed your policies, there are a few savvy strategies to make the most of your coverage while keeping costs reasonable.
1. Ask About Discounts
Many insurance providers offer discounts that you might not be aware of. Bundling (combining home and auto insurance), installing safety devices like smoke alarms, or maintaining a good driving record can lower your premiums.
2. Shop Around
Loyalty to one insurance provider is great, but it doesn't hurt to compare quotes. New customers often get welcome discounts, and switching insurers could save you hundreds of dollars annually. Just be sure to avoid gaps in coverage during the transition.
3. Consider Higher Deductibles
Raising your deductible (the amount you pay out of pocket before insurance kicks in) typically lowers your premiums if you can afford it. This is especially useful for policies like auto and homeowners insurance.
4. Reassess Coverage Levels
Eliminate what you don't need (like roadside assistance if you already have it through your credit card) and add what you do. Fine-tuning your policies keeps your insurance as cost-effective and relevant as possible.
5. Review Long-Term Goals
Your financial goals evolve, and so should your insurance. If you're saving for retirement, downsizing your home, or planning for future health expenses, adjust your policies to reflect those goals.
An annual insurance review doesn't have to be overwhelming. By breaking it down into manageable steps with our checklist, you can confidently cross this task off your to-do list. Not only will this save you headaches down the road, but it could also save you significant money in the present.
The team at SimplyIOA is here to help you with every step of the process. Whether you need advice on adjusting your policies, finding better rates, or understanding your coverage, we're just a call or click away.
Kickstart the new year on the right foot – start by speaking to a SimplyIOA agent at 833.872.4467 or get a quote online now.