The Importance of Regular Insurance Policy Reviews: Ensuring You Have the Right Coverage

Insurance is a valuable tool to help you manage risk, but for it to be up to the task, it needs to be well suited to the specific risks you face. This is true in both business and personal insurance coverage options, and because circumstances can change so quickly in life and work, regular policy reviews are essential. Let’s get into why this annual task is so important.

What Is A Regular Policy Review?

Much as it sounds, a regular policy review is an opportunity to look over your various insurance policies and verify that they still provide adequate coverage in the coming months. How will you know? Your local insurance agent can work with you, reviewing the policy limits and comparing them to your current life circumstances. Since a lot can happen in a year, it’s a good practice to do annual reviews to ensure that you’re always protected against life’s risks and what-ifs.

What can you look for when conducting your annual policy review? Take a close look at your life over the last year–has anything major changed in your life, work, or home? Some changes will require additional insurance coverage to ensure that you’re adequately protected. Meanwhile, other changes could mean that you can lessen coverage limits. A trusted insurance agent will be able to give you personalized, tailored advice and recommendations. 

Why Are Annual Policy Reviews Important?

Just like you’d take your car for scheduled routine maintenance, or go to the doctor for a yearly checkup, annual insurance policy reviews are a way to get an assessment of anything that has changed since your last check-in. By doing this annually, you can establish a baseline coverage need and ensure that you’re always protected against common risks.

What are some things that could affect your insurance needs? Here’s a collection of some common reasons why you may need to reconsider coverage limits:

• Big purchases for your home or business may require higher policy limits
• Home or business remodels, updates or additions that increase the value of your property could necessitate higher coverage limits
• Adding safety and security systems to your home or business could bring discounts to your homeowners or business policy
• High-ticket personal property purchases may require higher coverage limits or additional riders or endorsements
• Major life changes (new children, children moving out, new driver, marriage, divorce, buying a home, receiving an inheritance, job change, new business) could spell a need for more or less coverage, depending on the scenario
• Expanding or otherwise changing your business could result in updated insurance requirements
• Acquiring certain breeds of dogs could increase premiums to ensure protection or require independent coverage
• Adding features like pools or trampolines to your property may necessitate higher coverage limits or additional liability coverage
• Downsizing or selling property may mean that you can lower your insurance limits
• Both an increase and decrease in assets or income can create a need for an adjustment in coverage limits along with liability considerations 

You may also discover that various policies you have with different insurance companies could be conveniently provided by one single company. This often results in potential discounts for bundling policies, and it is worth taking a look annually to see if you could switch to a new provider for certain coverages. Your trusted local provider of home insurance in Kent or small business insurance in Ohio can ensure that you don’t sacrifice quality for upfront savings.

For business owners, annual policy reviews ensure that you are compliant with current laws and regulations, which tend to change over time. Getting caught without vital coverage or too low of a policy limit could bring legal ramifications and end up hurting your business. It’s worth the effort to meet with your source for small business insurance in Ohio to ensure adequate coverage that also satisfies any legal or industry requirements. If you are offering new products and services, there may be additional coverages that come into play.

With all life changes that you experience that could prompt changes to your insurance policies, it’s vital to get an expert’s take on your situation. If you try to navigate this alone, you could very well end up reducing coverage to the point that you compromise your protection entirely and are left exposed to risks. A heart-breaking example is if a natural disaster were to damage your home and you learn too late that your reduced coverage limits won’t be able to cover repair or rebuilding. At the same time, neglecting to contact your local insurance agent for advice can also leave you paying more than you need to following certain life changes. You could be over-insured and unaware, paying for redundant or excessive coverage that is no longer necessary.

Neither scenario is good, and the best way to prevent both while also ensuring that you’re carrying that just-right level of insurance coverage is to talk with a trusted advisor at BK Insurance & Financial Services. In talking with our team, you may also discover that certain changes in the insurance market itself due to volatile factors like natural disasters, inflation, or changes in construction costs are affecting your premium cost. They can then work with you to uncover applicable discounts, bundling opportunities, or new products that can help to optimize your insurance coverage. Plan for annual policy reviews and reap the benefits of our expertise.

Comprehensive Small Business Insurance In Ohio

Regular reviews of your personal and business insurance policies are a must to ensure that you can protect your financial well-being and peace of mind. When your assets and liabilities are safeguarded with adequate coverage, you can prevent problems in the future. And when you regularly meet with a trusted insurance agent, you can also uncover money-saving opportunities for discounts that can make your insurance even more valuable. Whether you opt for your annual insurance checkup at the start of a new year, around your policy renewal date, or on some other anniversary, just be sure you put it on your to-do list. Your future self will thank you, and you can rest easy, knowing that you’re protected, come what may. 

Contact BK Insurance & Financial Services to learn more about our personal and commercial offerings and to schedule your own annual policy review.