How to Do an Annual Insurance Review (and Why You Need One)

0
905
Annual Insurance Review Write a List
Write a list of all valuable possessions, and document where they're covered in each of your policies.

The Value of an Annual Insurance Review

Annual Insurance Review Home Insurance
Get the right amount of home insurance for you.

We can all agree insurance is an important tool available to protect us when life gets tough. We can also agree that insurance plans can be complicated and difficult to understand without an agent or someone who specializes in the industry. Being a responsible adult is challenging, but like death and taxes, it’s another thing we can’t stop from happening. Doing an annual insurance review is one of those tasks that goes undiscussed, but is essential to safeguard your home.

According to Liberty Mutual, 18 percent of people have documentation for their belongings and only one in five in the United States make an adjustment after a major purchase or going through a dramatic life change. For something so essential to your financial health and protection, that’s not a lot of people.

When you buy a home, becoming a homeowner statistic doesn’t have to happen. By doing an annual review, you can best protect your finances, home, assets and yourself. Not sure why you need one or where to start? We’ve got some ideas for you.

Annual Insurance Review Health and Wellness

Get Connected With a Professional Insurance Agent

Nobody knows how to navigate home insurance better than an agent. They are well-versed in insurance jargon, fine print, excessive paperwork, financials and the current state of home ownership trends. So, how do you find the right one for you? There are plenty of agents who are ready to help.Some agents are through a well-known company, while others are independent. By going independent, you have the benefit of being able to compare different quotes and policies, while going through a business provides stability with its procedures. There are places to get a quote for mobile home insurance that allow you to do your research ahead of time.

Look for Gaps in Coverage During Your Annual Insurance Review

Annual Insurance Review ValueLike any home, manufactured home values go up and down. And, with that, you’ll need to look into your home insurance to see if it matches your home value. The housing market changes constantly, and evolves. An annual review will keep you up with those housing trends. For example, if you have not had a review and your home value goes up, or you’ve been remodeling your manufactured home, your insurance will only cover the home’s worth from when it was purchased. If the unthinkable happens, there will be a gap in coverage that could prove costly.

Annual Insurance Review Manufactured Home
Take into consideration the value of your home and all of your belongings.

Consider How Your Finances and Assets Have Changed

If your finances have gone up or down in recent years, it’s time for a review. Determine your net worth and compare it with your current insurance policy. As mentioned above, look for gaps. If your yearly income increased, you may not be protected enough in your policy. Likewise, if you’ve had a recent decrease, you may be paying too much for your policy. This doesn’t just include your yearly income, though. Any assets gained or removed should be considered as well. These items might include:

  • precious jewelry
  • automobiles
  • furniture
  • and financial accounts like savings
  • bonds
  • CDs

In fact, a third of Americans don’t even know the value of their possessions. To protect yourself and your belongings, review anything that has changed over time so you can hit that insurance sweet spot.

Annual Insurance Review Calculator
Calculate the value of all of your property, your car and home included, to make sure your insurance coverage matches the value.

Look into bundling your policies

Homeowners insurance isn’t the only option out there. There also is life insurance, health insurance and car insurance. To make life easier, it is common for car insurance to be bundled together with your homeowners insurance. Bundling is not only an easy way to consolidate, streamline and keep track of your policies, but it also helps you save money. People who look into bundling often save five to 25 percent on their insurance plan. Have your agent help you go over your plans and see which ones make the most sense to bundle.

Lindsay Patton-Carson is a writer and content and social media manager based in Philadelphia. As a trained journalist for over a decade, Lindsay has accumulated bylines on publications that include PhillyVoice, One Green Planet, Girlboss, Care2, The Huffington Post and Bust to name a few. Lindsay currently works for PiperWai Natural Deodorant and manages social media platforms for Animal Avengers and Miles for Migraine. She loves animals, pop culture, tweeting nonsense, David Bowie, spending time laughing with her husband and cuddling with her dogs. (On the off chance they’re behaving.)