A personal insurance review is simply reviewing your insurance policies with your agent. This can be done by phone or in person. I feel it is always nice to do these in person. Meeting in person makes the review more personal and builds rapport with your agent. I recommend completing a personal insurance review every one to two years. There are several benefits to having a regular insurance review.
One benefit is that you may uncover discounts that you are eligible to receive. Insurance companies offer a variety of discounts to their policyholders, so you want to see that you are receiving all discounts available to you. One example of a discount that may be overlooked is the Good Student Discount. Most companies offer this discount, but the agent may not be aware that a child qualifies for the discount until an insurance review is done. Updating the electrical, heating, or plumbing on your home may provide you a discount on your home insurance; but your agent may not know that these updates have been done to your home until you have an insurance review. Personal insurance reviews are a great opportunity for you to discuss all discounts available with your agent.
A second benefit is to review the coverage on existing policies. Your situation may have changed since the policy was written and you may not need the same coverage as you did previously. One common situation is people that have vehicles on their policies for several years. Sometimes these vehicles still have full coverage, but the customer does not realize it. The age or condition of the vehicle may not warrant the additional premium for full coverage. Another common situation is people that still have very low deductibles on their home insurance. It was not uncommon to have $50, $100, or $250 deductible 15 to 20 years ago, but many times there is a significant savings in premium to raise the deductible. A personal insurance review is a great time to remove any coverage that may no longer be needed.
A third benefit is to locate any gaps in coverage. There are many areas where gaps can occur in your insurance program without you realizing it. Your life changes frequently and many of the changes may seem minor, but can have an effect on your insurance coverage. Some common changes that affect your insurance are updating a home can increase its value; having children may increase the need for life insurance; purchasing an expensive television or jewelry may require additional endorsements be added to your home insurance. Having an annual or bi-annual review helps to uncover areas where gaps in coverage may exist.
People are often hesitant to have an insurance review because they feel the sole purpose is for the agent to sell more insurance. However, the purpose of the insurance review is to make sure that the individual has the proper coverage in place for their situation. This is a benefit to the agent and the customer. The customer benefits by gaining a knowledge of their coverage and receiving the peace of mind that they are properly insured. The agent benefits by knowing their customers will have no gaps in coverage if a loss occurs.
It is important to have regular insurance reviews with your agent. The reviews make sure proper coverage is in place before a loss occurs and that you are paying the proper premium by taking full advantage of all discounts available.