We all enjoy having fun with the holiday festivities and prepare for our New Year’s resolutions in the beginning of the year. I’m sure the last thing on anyone’s mind when it comes to prepping for the new year is to think about your insurance coverage.
However, if you want to start the New Year off right, then you definitely need to get your financial house in order, and as unsexy as it sounds, that includes making sure you have the right insurance coverage.
Reviewing your insurance doesn’t have to be the long drawn-out process it sounds like. It can actually be a very quick and painless process, yet it will prove to be invaluable should you ever need to rely on your insurance. Here are several reasons it’s important to review your insurance coverage.
Not Enough Coverage
Have circumstances in your life changed? Perhaps a new baby, a new house, more valuables in your home?
Any important life changes could impact your insurance needs. Adding a member to your family, or moving to a new house, means that you most likely will need more coverage.
This is worse case scenario and definitely the reason you need to review to make sure you are adequately covered in an emergency. For life insurance, review that you have enough money to cover your wishes should anything happen to you.
Did you build a new home addition? Make sure your new square footage is covered in your homeowner’s insurance policy.
Furthermore, it’s always good to go through your policies and refresh your memory on exactly what is and what isn’t covered. Sometimes things you think will be covered aren’t, and you don’t want to find yourself without an adequate emergency fund to cover major house emergencies.
Too Much Coverage
The plus side of going over your insurance coverage is that you may find you’ve been paying too much. That’s right.
Do you still have full insurance coverage on that old beat-up car? Chances are you will have to replace it anyway, so it’s not worth it to pay that much insurance if you’re planning on getting a new vehicle within the next year or so.
Check for Discounts
The new year is a good time to make notes on your calendar to check with your insurance broker throughout the year for new quotes to ensure that you’re still getting the best deal possible.
It’s always good to shop around and never become complacent with simply renewing your policies year after year.
Insurance is like a spare tire in the car. You hope you never have to use it, but you’ll sure be glad you had it if you do ever have to use it. That’s why it’s important to set aside some time at year end to take a quick review to make sure you’re adequately covered in all areas.
How often do you review your insurance coverage?