Reviewing your Policy Annually

Reviewing your policy annually is a very good practice and can help you ensure that you are renewing a policy on time. Generally speaking, motor vehicle insurance premium payments are calculated annually, and unless specifically negotiated differently, a term in the insurance sector is usually twelve months long. That is a reasonable period of time for all kinds of things to have changed and accounted for in the renewed policy. But, perhaps you are one of the many people who, at the end of each term, simply write a check and send it off to their insurance agents confirming their desire to have their policy renewed, with little or no conversation about their coverage, because as far as they can tell nothing much has changed in their insurance situation since the last time they looked at it.

What often happens is that someone delivers a brand new bundle of insurance papers to you, you sign where it is indicated, return the portion that you must, and consider yourself covered. Sometimes this works. People get away with not looking carefully at their insurance policy, but only because they happen to be lucky this time, and nothing happens that requires them to file a significant claim. It is very good policy to review your homeowners insurance policy at lest once a year when it is time for it to be renewed, and certainly every time that an event occurs that has a profound effect on any area of your life.

The Annual Review

This is actually quite an easy process. It may turn out to be a two part event, but it need not be awfully time consuming. Proper management of your homeowners insurance is such an important matter, anyway, that even if it were to require many hours of your time, it would still be something that had to be done conscientiously and carefully.

It is always a good idea to schedule these kinds of things well in advance, so that planning and preparations can be effected in time to make it a worthwhile exercise. In fact, because insurance policies are often written is such obtuse and confusing language, it would be a good idea to schedule a meeting with your insurance agent right from the start to assist you in reviewing the policy.

In preparing for the meeting, you will want to have looked over the policy to refresh your memory about the kind of coverage you currently have. Then make notes about developments that may have occurred in your life over the past year that might impact your insurance. This could be a change in your job. If you are earning more money you might have made some important purchases, or you might want to increase your deductible and earn a reduction in your premium. You might want to update your inventory.

You might be considering making some modifications or improvements to your home in the coming months. It would probably beneficial to discuss these with the agent when reviewing your policy annually to find out what changes they might occasion in your insurance, and at what point in the process you would be required to notify your insurance carrier.

Once you have reviewed your inventory, noted the developments you have made or wish to make, and have refreshed your memory about the contents of your current policy, meet with your agent and talk about these, as well as about deductibles, limits, and possible deductions in your premium.


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