A lot can happen in a year. Your oldest moves out and into their own apartment. You remodel your home. Your youngest begins to drive. By the time the new year rolls around, it’s always amazing to think about how much has happened.
Most people don’t realize how much those life changes also impact your insurance coverage — the policies you currently have and the policies you may now need. The beginning of the year is a great time for an annual insurance review. You can review the year you’ve just had, and plan for the year ahead.
While multiple types of insurance coverage need to be reviewed each year, it’s home insurance that gets forgotten. Auto insurance is updated as vehicles are replaced and young drivers get a license. Business insurance gets added or increased based on the requirements of the industry. But too many people still have the same insurance coverage they chose when they bought their home.
Your home has gone through many changes since you bought it. Remodels, better furniture, and a change in value are only the beginning. It’s imperative that your home insurance coverage reflects these changes. If not, you might not be able to replace your possessions or home after a devastating storm or accident.
There are several factors that determine how much home insurance coverage you need:
- The existing value of your home
- The current costs (materials and labor) to rebuild your home from the ground up
- The type and amount of personal possessions you have
If your homeowners insurance policy reflects 2007 home values and your old beanbag collection, there’s a good chance you don’t have enough insurance coverage.
During an annual insurance review, it’s also the perfect time to review any and all life and home changes from the previous year. Some of those changes may require an update to existing insurance policies while other changes may require new policies. If you experienced any of the scenarios in the past year, your insurance will likely be impacted:
- People moving in or out of your home
- New property purchases
- Starting a home-based business
- Giving birth to or adopting children
- New drivers
- Getting married or divorced
- Purchasing valuable items or starting a valuable collection
- Remodels and renovations to your home and property
- Buying all new technology, furniture, appliances, and other high-dollar items
Any and all of these situations affect your insurance coverage. When an accident happens, you need to know that you have the coverage to take care of medical expenses, deal with liability concerns, and replace what’s been lost. At your annual insurance review, you can discuss the previous year and purchase the coverage that you need for the year ahead.
When you’re ready to review your insurance coverage, contact Charlotte Insurance. We’ll ask the right questions to make sure nothing is missed. We’ll also find the discounts you qualify for and make sure you get the best possible rate.