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It’s important to review your insurance policies every year. At a minimum, this allows you to assess whether any changes have occurred in your life and whether or not current policies are still adequate to address those changes. It can also help find areas in which additional coverage may need to be purchased, or existing policies streamlined or consolidated to reduce costs.

Here are 5 Reasons why you should consider reviewing your insurance policies on an annual basis.

Life events require policy updates:

Considering the extensive changes that can happen in a person’s life, it is important to review your insurance coverage every year. The birth or adoption of a child, inheritance of heirlooms, changing jobs, moving homes, starting a business, or buying and selling assets are some of the factors that will shift insurance requirements. Depending on the circumstances, these events could increase or decrease your insurance requirements. Assets such as jewelry and electronics that have been acquired over the festive season should be correctly specified when updating your insurance policy. Additionally, those who have moved homes should update their addresses with their insurers.

Wear and tear could affect your premiums:

Ensure that you have the proper amount of coverage by regularly reviewing your insurance policies. Your cars, furniture and electronics may lose value over time, but they may also increase in price due to fluctuating exchange rates or a shortage of goods.If you have assets that are depreciating in value, such as cars and electronics, make sure that your insurance coverage includes a replacement value. This type of coverage will let you know how much it would cost to replace an item at the current market price if it were stolen or destroyed. As with all types of insurance, the replacement value is often higher than the original purchase price of the item.

Home enhancements could leave you underinsured:

Any home improvements and renovations may enhance the value of your home. As such, policies need to be adjusted to reflect higher values. Your policy should also correctly account for the contents of your home and any valuable items you may have acquired after your last policy update. If this is not done correctly, it could leave you underinsured and a pay-out from a claim may not cover or replace the full value of the assets.

Less risk means more savings:

All insurance policies are priced by calculating the risk factors involved. Ultimately, decreasing your risk will decrease your insurance premiums.  For example, a security system may decrease some of your home’s risk factors and thus your insurance premiums.

Take lifestyle shifts into account:

The shift to hybrid and remote working has resulted in fewer people traveling between home and work every day. This means that monies saved from paying less on car and home insurance can be used in other areas such as increasing your monthly bond repayments or emergency savings.