The Importance of an Annual Insurance Review
When was the last time you reviewed your insurance policies? If you haven’t reviewed your insurance policy in a while, now is a good time to do so. The importance of an annual insurance review is that it allows you to reassess your needs and make sure there are no gaps in your coverage, and that you are taking advantage of savings that you are entitled to.
The importance of reassessing your insurance needs
Let’s talk about some different scenarios where reviewing your insurance policy could make a difference in your coverage. As you will see, some of these scenarios may save you money, while others will help you better protect your investments.
Are you working closer to home, or at home? The distance you travel for work does affect your rates. If you now are working closer to home, you may be eligible for an auto insurance discount.
Have you installed a home security system? Installing a professionally monitored home security system is likely to reduce your homeowner’s insurance premium. Homes with these types of security systems are less likely to be burglarized or suffer costly damages due to fire or water. This is just one way to reduce your homeowner’s insurance premiums…speak to your insurance professional at Nicholas / Tobin Insurance for other steps you can take to save money!
Have you recently made an expensive purchase, like jewelry, art or a collectible item? Your homeowner’s policy covers damaged or stolen items, but that coverage is typically limited. You’ll need a rider for expensive items, allowing you to insure them at their cost or value. You will need a proof of worth (i.e., bill of sale or certified appraisal). To learn more about this type of coverage, check out our blog post on How to Insurance an Expensive Gift.
Did you add a swimming pool to your backyard? While swimming pools are great family fun, insurance companies consider them an “attractive nuisance.” Homeowners are likely to be considered liable for injuries caused to children trespassing on their property if the injury is caused by something that could attract children onto their property. So, you not only need to consider liability for injuries incurred by invited guests, but also those of potential trespassers.
Because your homeowner’s policy has limits to its liability, you may want to consider adding umbrella insurance. Once you’ve hit your limits on your homeowner’s policy, umbrella insurance coverage will kick in. There are many other reasons you might want to add umbrella insurance to your insurance portfolio though, besides adding a swimming pool to your yard. Umbrella insurance is relatively inexpensive, but this supplemental insurance could save your assets from a devastating financial loss. Speak to your insurance professional at Nicholas / Tobin Insurance to fully understand how an umbrella policy could protect your assets.
Does my policy cover a rebuild of my home today? The amount that you insured your house for when you first bought it for is probably not what it should be insured for today. It will cost more now to rebuild. Over the years, you may have renovated your home, added new kitchen appliances, or added on, which would increase its value beyond simple appreciation. If you haven’t revised your insurance coverage, you could be left with a big shortfall.
Another thing to consider is whether you have actual cash value or replacement cost insurance. If you had a house fire and your home and all of its contents was destroyed, replacement cost would cover the cost of replacing your home as well as the contents at current market value. Actual cash value would reimburse you for your home and its contents at a depreciated rate, which is closer to the price you could sell that item at a tag sale. Although replacement cost is more expensive, it also ensures that you are well protected.
You will need a good home inventory. This is actually easier than it sounds and can be done with photos and videos. You may also want to consider using a home inventory app. Make sure you have all your big ticket items documented well with make and model, purchase receipts, and photos. Learn what the replacement equivalent would be if the make / model is no longer available.
At Nicholas / Tobin Insurance, we will help you reassess your insurance needs as your circumstances change, as well as comparison shop for you to make sure you are receiving the best pricing possible. Schedule an appointment today for an annual insurance review!
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Nicholas / Tobin Insurance, located in New Milford, Connecticut, provides its clients the highest quality insurance products and services available today to protect them, their families, and businesses. We offer homeowners insurance, renter’s insurance, car insurance, business insurance, travel insurance and more! Our commitment to service means our team of licensed insurance professionals is here to help with simple policy questions, consult with you to determine appropriate coverages and be available 24/7 when trouble strikes, and you need assistance managing through the claim process.