When it comes to life or homeowners insurance, you may think it’s a one-time thing that you take care of once and then forget about it. However, you should review your policy each time something significant in your life changes. Below are some reasons why you should review your insurance policies.
If the amount of money you are making has substantially increased since you first took the policy out, it’s time to reevaluate your insurance needs. As your income increases, so does your standard of living typically. If anything should happen to you, you want to ensure your family is well taken care of and can maintain their standard of living.
When you get married, it’s not about just you anymore, especially if your spouse depends in whole or in part on your income. You will want to ensure they will be able to pay off debts and meet expenses in the event of your death. The amount of life insurance coverage you get will depend on your debt loads, both you and your spouse’s income, and other financial aspects.
Your children should be the most important consideration in your life insurance policy. When you have children, your policy can help your children meet present and future expenses if you prematurely pass away.
If you’re making any type of improvements to your home, such as adding square footage or renovating it, you may need to increase your home’s replacement cost coverage. In some cases, your homeowner’s policy might not offer you any type of coverage while you are in the process of renovating your home and you won’t be able to buy a new policy until you have completed the renovation. Because of this, it’s a good idea to speak with your independent insurance agent before you make improvements to your home’s structure
When it comes time to retire, if you have reliable income and have paid your debt down, you might wish to get rid of your life insurance policy. However, most people would rather adjust their policies so they can withdraw cash from them to meet expenses.
A New Dog
If you bring a new dog into your home, you will want to talk with your independent insurance agent about changing your homeowner’s policy for extra coverage. Dogs can increase the likelihood of home damage or damage to your neighbor’s property. They also increase the risk of accidental injury to other people. There may be certain exclusions for dogs such as prohibited breeds should a liability suit be filed against you, therefore, it’s important that you talk with your agent and find out if you do have any dog exclusions on your policy before bringing your new furry friend home. You also might want to consider getting pet insurance.
Other reasons to review your policy might include:
- Adopting or having a child
- Buying or building a new home
- Gaining new possessions
- Opening a new business
- Moving into a condo or apartment
These are only some examples of when you should review your insurance policy. To always be on the safe side and ensure you are properly covered, it’s best to speak with your insurance agent each year to ensure your coverage is up to date.
Contact us here at BOLT Insurance Agency for all your home insurance and business insurance needs.