Insurance is about offering peace of mind, it’s about preparing for the unexpected, it’s about making sure you and your family have the protection you need. An annual review is a great tool to make sure you are getting all of the above out of your insurance plan.
Think back to when you purchased your policy, how much time did you focus on cost?, how much on coverages and understanding the policy? If you are like most, not much time at all on the latter.
There are two common short falls to not reviewing and understanding your insurance program. Not understanding the short falls can cause frustration at best and cost hundreds of thousands at worst.
1) Your needs and situation change and your insurance plan needs to also.
(Example: a new born, a purchase, home addition, new business venture, etc.) Not reviewing changes like these can leave huge gaps.
2) If don’t understand how insurance works and what it covers, it’s impossible to manage your risk.
(Example: not understanding a home policy doesn’t cover maintenance items, such a rotting wood siding.) If you know your insurance policy you can take steps to avoid issues from growing into bigger losses.