Life circumstances and the business environment are constantly changing. What was adequate coverage a year ago may no longer be enough today. For this reason, conducting an annual review of your insurance policies is essential to ensure you maintain proper protection. Below, we explain why this practice is crucial and what aspects you should consider.
Protect your new assets
Over time, you may acquire new assets or properties that weren’t included in your original policy. For example:
- Properties: If you purchased a second home or a commercial property, you’ll need to add them to your insurance policies.
- Betterments and improvements: Permanents additions, extensions or alterations made to your Property may require changing the limits of Insurance stated on the policy.
- Vehicles: A new vehicle should be included in your auto insurance policy.
- Equipment and technology: If you’ve acquired expensive equipment for your business, it’s essential to insure it properly by adding it to your policy.
Adjust coverage according to current value
The value of your assets can change over time. For instance, a home or a business may have increased in value due to renovations or market appreciation. If your policy doesn’t reflect this new value, you could face significant issues in the event of a claim.
On the other hand, some assets may depreciate. Adjusting your coverage can help you avoid overpaying for items that have decreased in value.
Incorporate new coverages
New risks can emerge over time that didn’t exist or weren’t relevant before. For example:
- Cybersecurity: With the increase in cyberattacks, many businesses have opted to add cyber liability insurance.
- Regulatory changes: Some local regulations may require additional coverages to remain compliant with the law.
Reviewing your policy annually allows you to identify these needs and ensure you’re prepared for any eventuality.
Evaluate changes in your personal or business circumstances
Significant changes in your life or business can alter your insurance needs. These may include:
- Job changes or starting a new business
- Marriage or the birth of children
- Business expansion or downsizing
Each of these situations may require an update to your policies to ensure you continue to have adequate coverage.
Avoid unpleasant surprises when filing claims
One of the biggest benefits of conducting an annual insurance review is avoiding problems when filing a claim. Many people find out they don’t have the coverage they expected only when they try to use their insurance. Keeping your policies updated significantly reduces this risk.
An annual insurance review is a key practice for maintaining adequate coverage and protecting your assets against changing risks. The beginning of the year is an excellent time to do this. By evaluating the value of your assets, incorporating new coverages, and adjusting your policies according to your circumstances, you can ensure that you’re well protected against any unforeseen events.
At Rondon Brokerage, we help you review your policies and tailor your insurance to your current needs. Contact us for a personalized review and ensure the peace of mind you deserve.
