How Often Should I Review My Insurance Coverage?

It’s a good idea to review your insurance coverage at least once a year to ensure that your family and belongings are appropriately protected. You will also want to review your coverage any time you have made a major purchase or experienced a significant life event, such as getting married, buying a house, sending your child off to college or receiving an inheritance. These life moments are considered insurance-qualifying events (also known as life-changing events for purposes of insurance), and it’s important to make sure your coverage is up to date to protect the people and things that matter most to you.

What’s an insurance-qualifying event?

Insurance-qualifying events are those moments when life circumstances change. Since these events can occur throughout the period of an insurance policy, you’ll want to check with your agent when an insurance-qualifying event occurs outside of the typical policy renewal time frame.

A qualifying or life-changing event, for insurance purposes, typically means:

• A change in family status or size: This includes having a baby, adopting a child, getting married, getting divorced or losing a family member.
• Childhood milestones: When your child graduates from school, goes off to attend college or turns 16 and is eligible to drive a car, it’s a good time to check in with your insurance agent to review your coverage.
• Retirement and aging milestones: If you retire and no longer commute to work, or downsize from owning a home to renting one, an insurance review can help identify potential adjustments in your coverage.
• Professional changes: If you own a business, changes to your company can warrant an insurance review, too. These changes could include selling your business, going public with an Initial Public Offering (IPO) or changing office locations.
• Changes in your living situation: Changes in your living situation (or locale) merit an insurance review. This might include moving, selling a property, remodeling your home or renting it out through a short-term rental property platform.