4 Reasons You Should Review Your Insurance
It’s tempting to renew your insurance yearly without reviewing it. But odds are, year after year, your life undoubtedly changes!
Regularly reviewing your insurance policies and risks with your advisor will help ensure that you aren’t left with gaps in coverage in the event of a loss.
1. Cost & Claims
In the simplest definition, an insurance deductible is the part of the claim you pay. Often, insurance policies have more than one type of deductible. Deductibles can be a powerful tool to control the cost of your insurance, but it is also essential to choose a deductible amount that your household can afford. If you have not reviewed your coverage and deductibles lately, reach out to your agent or broker to schedule a review. With storm season around the corner, no one likes being caught unaware.
- Home Insurance – Often, you will have the option of choosing the deductible yourself. Many insurers offer several choices and ask about the savings for each option to help you choose the most comfortable option.
- Auto Insurance – Many policies have separate deductibles for collision, comprehensive and road hazard glass. Always try to choose a deductible that you will be able to pay comfortably. In some cases, having different amounts for each coverage deductible may help offset the overall policy cost and still allow decent protection.
2. Inflation, inflation, inflation
A lot has changed in the past year, including the cost of, well, everything. Check the property value on your policy and ask your broker the last time you updated it. A gold ring valued back in 1996 probably has a much different value now. It might be worth getting an updated appraisal. Maybe you completed some renovations during the pandemic. Have you reviewed those changes with your advisor yet? These changes apply not only to your belongings and home but also to boats, ATVs, and trailers.
- Home Insurance – Adding a garage, finishing your basement, or re-siding your house could affect your home’s rebuilding value. Changes to your home make it essential to review your dwelling limit on your insurance. The last thing you want is to find out your upgrades are not covered in the event of a loss.
- Renter/Condo Insurance – If the worst happens and your home experiences a loss, the landlord or condo board is only responsible for rebuilding your unit the way it was initially. Any improvements or improvements you make to your home would have to be insured under your policy. So if you’ve replaced your flooring or installed brand new countertops, you’ll want to make sure the limits on your policy are enough.
3. Family Additions
If you have someone dependent on you financially, it’s crucial to have the right coverage in place so that your loved one isn’t left in a bind should something happen to you.
- Home Insurance – When moving in with someone who is not your spouse, and you aren’t considered common law, your stuff is not covered under their policy. Getting your insurance will ensure your belongings are insured against a loss.
- Life Insurance – Could your significant other afford mortgage payments, funeral expenses, or debt payments on their own? Adding them to your policy can help them maintain their standard of living if you suddenly become ill, get injured, or pass away.
4. Accidents & Lawsuits
Most provinces require a minimum amount of liability coverage for auto insurance. Nearly all home insurance policies offer liability coverage as well. Liability is when someone else is injured or suffers a financial loss due to your actions — and even the most careful of people can find themselves liable financially. Accidents happen, and sometimes they can be costly. If you are found responsible for damage that exceeds your policy’s coverage limit, you could find yourself paying for the balance for many years.
- Auto – If you do a lot of out-of-province driving or the United States, ask about the different liability practices. The last thing anyone wants on vacation is a million-dollar lawsuit for a fender bender.
- Property – Ask your broker for a liability loss example based on your type of property: Home, Renter, Condo, Mobile Home, or Seasonal Cabin. For example, some properties have a higher loss ratio than others, depending on how close a neighbour is.
- Business – Bumping up your liability limit may be more affordable than you think — and it can help protect your business, savings, or future earnings.
Above are just four big reasons to review your insurance. However, if you’ve experienced many changes in your life (getting older counts!) and want to ensure you are protected, a quick call with an advisor can help you quickly assess your coverage and give you the peace of mind you deserve.
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