When Should You Update Your Insurance Policies?

When it comes to insurance policies, many people often feel like they can set it and forget it. However, there’s rarely anything in life where we can set it up once and forget about it.

And as your life circumstances can change, insurance is also constantly evolving. There are a few critical times when you should take a closer look at your insurance policies and consider updating them.

Reasons to Update Your Insurance

Insurance isn’t exactly straightforward. Have you ever had insurance questions like “do I have to update my life insurance?” or “do I need to call my insurance agent when I make a big purchase?” pop up?

The biggest reason why it’s important to update your insurance regularly is that it pays— literally! Keeping your insurance up-to-date ensures you get the best coverage for your money. After all, who wants to pay for more than they absolutely have to?

Updating your insurance policies regularly can help you avoid potential gaps in coverage, which can be a real hassle if you ever have to file a claim.

Don't get caught paying the price for outdated coverage - make sure to stay in the loop with your insurance policies.

Changes in Your Property or Assets

If you have recently made a big purchase, like a home or a car, it’s always a good idea to review your insurance policies to ensure you’re covered in an emergency. Additionally, any time you’ve changed your living situation—whether you are renting or even just updating your home—is a great time to look over your policy.

It's essential to stay on top of these changes because you don't want to be left without coverage for an expensive asset! Review your policies regularly and get in touch with your insurer anytime something changes. It'll save you from any potential heartache down the line.

After a Major Life Change

Do you need to update your life insurance policy when you get married? Absolutely!

Changes like getting married, having a child, or buying a new home can significantly impact your insurance needs. For example, if you get married, you'll probably need to update your life insurance so that your new spouse is the beneficiary on your policies.

Likewise, when you have a new baby, it's a good idea to add them to your health insurance or update your life insurance policy.

Before Your Policy Reaches its Expiration Date

Although your insurance policy may not be the most riveting reading material, reading through it as it's approaching the expiration date is always the best practice.

It will give you peace of mind knowing that you have the right coverage and potentially find some cost savings. For example, did you know that if you have an alarm system, some insurance will offer a discount on your homeowners insurance?

When Your Coverage Limits are Insufficient

As the value of your assets and liabilities increases over time, it's vital to ensure that your insurance coverage limits are adequate. For example, if you've recently made a major purchase, like a new car or an expensive piece of jewelry, you may need to increase your insurance coverage to protect those items.

If you have also been in your home a few years, you’ve likely made some upgrades and purchased newer technology. Your current policies may not be enough to cover these new additions so best to chat with your insurance agent to update your policy.

When You Change Jobs

If you change jobs, you may lose access to your employer-sponsored health insurance (major bummer!). In this case, you’ll have to consider purchasing an individual health insurance policy to ensure you and your family have the coverage you need.

Many employers also offer life insurance as a benefit, so when you get a different job, check to see if this is the case. If you don’t have this benefit at your new job, call your insurance agent to update your life insurance.

If your employer does offer you life insurance, it’s still a good idea to discuss this with your agent to ensure you and your family are adequately protected.

When You Move to a New Location

As we already mentioned (and it's worth mentioning again!), anytime you move is a great time to review your insurance. When you move to a new location, regardless of whether you are renting or buying, you may need to adjust your insurance policies to reflect the new risks associated with your new home.

Here's an example. If you’re moving to a new city that statistically has a higher crime rate, you'll probably have to increase your homeowner's insurance coverage to protect your property and likely your vehicle as well.

Additionally, be sure to call your agent to update your renter's insurance if you are moving to an apartment or rental property. While it may not seem like a big deal at the moment, your future self will thank you in case of an emergency!

Now is the time to Update your Insurance Policies

Like going to the dentist, getting the furnace cleaned or rotating your tires, updating your insurance policies should be at least an annual affair.

By staying on top of your policies, you can protect yourself and your loved ones in case of an accident or other unexpected event.