The Importance of Reviewing Your Personal Lines Insurance Annually

Personal lines insurance can consist of many types of coverage and policies. These components can be woven into a stout and reliable financial safety net.

This may be particularly important for high-net-worth individuals and families, as greater financial assets typically require more robust coverage.

However, even if you’ve already spent a significant amount of time constructing and refining your personal lines insurance portfolio, the job is never completely finished.

As you and your family continue to grow and your circumstances evolve, it’s necessary to regularly revisit and adjust your insurance to ensure you’re maintaining suitable coverage while enjoying ideal rates.

Key Reasons to Reassess Personal Lines Insurance Coverage

Many life events may impact your need to reassess your personal lines insurance and make adjustments upon your annual renewal. Consider the following scenarios:

• Marriage or childbirth—Adding a member to your family or changing your marital status necessitates reconsideration of insurance. For example, you may want to ensure that your spouse and children are added as insureds to your health, homeowners, renters or auto insurance. Additionally, having others who depend on you may make it advisable to explore life insurance options. Without this due diligence, you and your family could lack the financial security needed to weather accidents and other unforeseen hardships.

• Residency changes—If you move into a new home or make significant renovations to your existing residence, you should ensure that you maintain adequate insurance coverage. Different locations or additions to your home could have substantial impacts on your coverage needs. Additionally, failing to notify your insurance company about changes to your home could lead to you being underinsured or even canceling your policy.

• Major purchases—Your financial assets need to be protected by sufficient insurance. Whether you enjoy collecting memorabilia or restoring classic automobiles, or want to purchase an additional residence, the right coverage should be a top priority.

Even if you haven’t undergone any significant life changes, annual reassessments should be conducted, as market trends and other circumstances around the world can impact your rates, potentially leading to increased costs regardless of whether you’ve made changes or filed claims.

Working with a qualified insurance professional can help you identify the best available options while minimizing rate.

We’re Here to Help

Contact Cormack-Routhier Agency, Inc. today to learn more or compare personalized quotes for high net worth insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.