During the festive season, most of us tend to loosen our belts, both financially and literally. We immerse ourselves in holiday fun and gear up for the New Year’s resolutions that follow. Granted, as we plan for the forthcoming year, reviewing insurance doesn’t exactly top the list of priorities. But if you want to get the New Year off to a stable start, getting your financial ducks in a row is crucial. And, as mundane as it may sound, this includes ensuring you have the right insurance coverage.
Assessing your insurance coverage need not be a long and tedious undertaking. In reality, it is typically a quick and straightforward procedure that can make a world of difference should the need to use your insurance arise. Here, we delve into several key reasons for reviewing your insurance coverage.
INSUFFICIENT COVERAGE
Has there been a change in your life circumstances? Maybe a newborn, a new home, or additional valuable possessions? Life-altering changes can significantly affect your insurance needs. Expanding your family or relocating to a new residence usually requires increased coverage.
This point highlights the worst-case scenario, but it’s certainly why you should revisit your coverage to ensure it’s adequate for possible emergencies. With life insurance, make sure the amount will cover your intentions if something unfortunate occurs.
Did you recently expand your home? Verify that your home insurance covers the new addition.
Taking a moment to peruse your policies and reconfirm what is and isn’t covered is always a smart move. Some things you assume are covered might not be, and the last thing you want is to lack a sufficient emergency fund to handle significant house emergencies.
EXCESSIVE COVERAGE
The silver lining of reviewing your insurance coverage is that you could discover you’ve been overpaying. Yes, that’s right.
Are you still maintaining full insurance coverage on that old clunker of a car? If a replacement seems imminent, paying a hefty insurance fee for the current one might not be worth it.
LOOK FOR DISCOUNTS
Kick off the new year by setting reminders to check with your insurance agent throughout the year for updated quotes, ensuring you remain privy to the best available deals.
Avoid becoming content with mechanically renewing your policies year after year; shopping around is advisable.
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Consider insurance as a spare tire in your car. While you fervently hope you don’t have to use it, if the need does arise, you’ll be grateful to have it. And that is precisely why you should dedicate some time at the end of the year to review your coverage and ensure you are adequately secured.
How often do you assess your insurance coverage?
