Insurance Annual Review Checklist

March 24, 2020

insurance annual review

Life changes in big and small ways each year, so it’s important to review your insurance policies annually to ensure you have the right amount of coverage. We’ve compiled a list of important items to address in an annual review so you’re always prepared.

Most folks tend to take a “set it and forget it” approach with their auto policy by allowing it to automatically renew each year. Although this is convenient, you should still touch base with your agent each year to discuss important items such as the following:

  • Changes in Driving Habits. Do you have a shorter commute to work due to a job change or office relocation? Changes such as this could lower your monthly auto premium.
  • Vehicle Age. An aging vehicle means a depreciation in value, so ask your agent about the pros and cons of increasing your deductible or lowering parts of your coverage to save money.
  • New Drivers. A new teen driver in the family should always be added to your auto policy. This may be costly at first since young drivers tend to have higher premiums, but it could save your major money down the road in the event of an accident.

Be sure to ask you Farm Bureau Insurance of Tennessee agent about the First Mile program for your young driver which can save parents as much as 10 percent on auto insurance.

Similar to auto insurance, people tend to renew property insurance each year without reviewing it which can be costly if you have gaps in coverage. Below are some helpful topics to consider when reviewing your policy with an agent.

  • Change in Home Value. The value of your home can change significantly over time due to market value and the age of your home, which could result in gaps in your insurance coverage if you don’t adjust it accordingly.
  • Home Renovations. Did you remodel a bathroom or upgrade your kitchen in the last year? This can add value to your home, which means your coverage should be increased should you ever need to replace it.
  • New Valuables. High-value purchases such as a new wedding ring, artwork, laptop, or big-screen TV should be added to your policy in case they are stolen, lost, or destroyed.
  • Home Inventory Checklist. A home inventory is a comprehensive list that includes descriptions, photos, and prices of valuable items in and around your home which serves as proof of possession when reporting a loss to your insurer. To ensure a smoother claims process, it’s very important to keep your list updated and stored in a safe place with at least one digital copy in cloud storage.

Purchasing a life insurance policy is one of the greatest acts of love you can do for the people you care about which is why we sometimes refer to them as “love dollars.” Here are some tips to consider with life insurance each year:

  • Life Events. Have you gotten married, welcomed a new baby into the family, or are you approaching retirement? Your life insurance policy should be updated each year to reflect your life changes, and your insurance agent is the best person to help you with that.
  • Beneficiaries. Failing to keep your beneficiaries updated can result in a dispute over who should receive the benefits of your life insurance policy if something were to happen to you. Be sure to update this annually so you always have the correct people listed.
  • Lifestyle Changes. If your income increases, your life insurance policy should match this to ensure your loved ones can maintain their current standard of living if something were to happen to you and your income was no longer available.
  • Now or Never. Don’t have a life insurance policy yet? There’s no better time than now since the younger and healthier you are, the better your rates will be.



Posted in Advice