4 Reasons You Need an Annual Insurance Review

An annual insurance review checks your coverage.

When you think about insurance, it’s unlikely you consider an annual insurance review. Most people choose a policy, set the payments on auto-withdrawal, and then don’t think of it again. But a yearly checkup is quite important for your financial security. 

At Lake Region Insurance Agency, our independent insurance agents are here to serve you. From choosing a plan to fine-tuning your needs each year, our team has you covered. Call today to schedule a free annual review of your policies. 

If you’ve never thought about a yearly check-in with your insurance agent, here are four reasons to schedule it now.

1. Peace of Mind

Worrying and wondering about your coverage isn’t how you want to spend your time. And yet, if you have children, a home, a business, or any valuable assets, you probably worry from time to time. With an annual insurance review, you can go to sleep at night, knowing that you have sufficient protection in place. 

Not only that, but you also will have planned for unexpected trouble in advance. A yearly review can ensure that you have someone ready to work on your behalf if a problem strikes. Trying to put pieces into place once an issue arises or a disaster hits doesn’t serve you. Make sure you have the coverage you require now.

2. Life Changes 

Having a child is a good reason to check your insurance coverage.

So much can happen in a year. You may have had a child or bought a house. Maybe you paid off your vehicles or purchased a business. All of these are reasons to sit down and comb through your insurance policies. 

For example, let’s say you get a better-paying job and move into a bigger home with a higher value and mortgage. And imagine that a new neighbor comes to visit and breaks an ankle when they misstep off your front porch. 

You could face a personal liability claim. You need to look at your insurance policies to make sure they will help you cover and maintain your lifestyle.

Some common reasons you might want to add or change your policies include:

  • Marriage or Divorce
  • Buying or Selling Your House
  • Buying or Selling a Rental Property
  • Buying, Starting, or Selling a Business
  • Having or Adopting a Child
  • Buying, Selling, or Paying off Your Car
  • Making a Large Purchase:
    • Boat
    • Snowmobile
    • Valuable Jewelry
    • Fine Art
    • Second Home

3. Save Money 

Policy prices change depending on the coverage they provide. If you skip an annual insurance review, you could be leaving money on the table. 

For example, if you no longer have a car loan, you may want to adjust the coverage to save money. If you need to add new policies for your situation, you might be eligible for multi-policy discounts. These options can offer excellent premium reductions.

Save money with an annual insurance review.

Saving money on premiums isn’t the only benefit to your yearly review. An annual check-in also looks at your deductibles and coverage limits in each policy. 

You may discover that you have a liability limit that won’t come close to replacing your personal property after a disaster. Or you could find that you have policies with really high deductibles that would be hard to meet. Your agent will examine these different pieces to find the plan that makes the most financial sense for your situation.

4. Fill the Coverage Gaps

Just as an annual physical helps you ward off many medical problems, a yearly policy review helps avoid insurance problems.

Many people mistakenly think that their homeowners policy covers much more than it does. They assume that any trouble that comes up with their house will fall under this plan. Unfortunately, they can be in for a terrible surprise if something happens outside of this coverage.

For example, assets and liabilities related to a home-based business may not fall under the protection of a homeowners plan. But many entrepreneurs don’t realize that.

Creating the habit of reviewing your insurance helps your agent suggest the best policies for you. With regular check-ins, they can advise you when it is a good time to add, combine, or remove coverage.

Preparing for an Annual Insurance Review

Insurance review each year

Even if you have nothing prepared, it’s still worth scheduling time for a yearly insurance checkup. Your agent will walk you through your needs and current coverage to help determine if any gaps exist.

But if you are someone who doesn’t mind a little homework, here are some tips to consider as you get ready for your review:

  • Gather information on your assets. Bring a list of your vehicles’ makes, models, and years. Put together an inventory of the high-value items you own, such as jewelry or a boat. Have a general idea of your home’s worth and remaining mortgage. 
  • Be comfortable asking questions. The insurance industry has a lot of specialized jargon that can be confusing. Never hesitate to ask what something means or how it will serve you. And you’re free to ask a question as many times as needed to feel confident in the answer.
  • Determine a general idea of your monthly budget for premiums. This information can help your agent find policies that align with what you are comfortable spending.
  • Be ready to discuss any significant life changes that have happened or that you anticipate happening in the next year.

Schedule a Review Today

At Lake Region Insurance Agency, we have been serving our Greater Minnesota neighbors for 50 years. With offices in Willmar, New London, and Cokato, MN, we offer convenient locations for you to stop by for a review. 

Our independent agents do not have ties to any particular insurance company or product. We search through all available options to find the one that meets your unique needs. Working with your situation and budget in mind, we help you find sufficient coverage.

We offer free reviews and quotes, so don’t hesitate to reach out and get connected. We can’t wait to help you have the peace of mind that your insurance will give you.

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