The Importance of an End of Year Insurance Review

Author:- David Mitchell MBA, MA.HR, SPHR, SHRM-SCP,
CIC (Certified Insurance Counselor)

Reviewing insurance coverage is something that should be undertaken at the end of every year, and there are a number of benefits that are associated with conducting end of year insurance reviews.

Too many people continue to automatically renew their premiums on an annual basis, never bothering to review their polices. While insurance is a vital expense, there are changes in circumstances that make it essential to perform an end of year insurance review in order to ensure you are still properly covered. These changes can include moving, getting older, falling ill, expanding a business, or welcoming a new family member.

Home insurance is one example of why end of year insurance reviews are important. The value of a home can actually increase over time, which means that the insurance coverage should also increase in order to ensure you have sufficient coverage. Otherwise, the policy may not be enough in the event of a total loss.

The installation of security systems, smoke and gas alarms, and roof improvements may even make homeowners eligible for a discount on the amount they pay every year, which adds another reason to perform an end of year insurance review.

Likewise, additional coverage may be required to cover all the contents of a home after expensive purchases such as musical instruments, jewellery, sports equipment, artwork, antiques and high-end computer or audio equipment.

It does not take long to conduct an end of year insurance review and doing so will ensure that you have the best possible coverage.