Investing in Assurance: Understanding the Importance of Annual Insurance Checkup

Reviewing your insurance policy annually is essential for several reasons, as it helps ensure that your coverage aligns with your current needs and circumstances. Here are some key reasons why it’s important to review your insurance policies each year:

1. Life Changes: Life is dynamic, and your circumstances may change over time. Major life events such as marriage, the birth of a child, buying a house, or changes in employment status can impact your insurance needs. Reviewing your policies annually allows you to update coverage amounts and types to reflect these changes.
2. Policy Updates: Insurance companies may update their policies, terms, and conditions. It’s crucial to stay informed about any changes to your coverage to ensure you understand the details and take advantage of any new benefits or features.
3. Market Conditions: Economic and market conditions can affect insurance rates. By reviewing your policies annually, you can assess whether you’re still getting competitive rates or if it’s time to shop around for better options.
4. Coverage Gaps: As your life evolves, your insurance needs may change, and you might inadvertently create coverage gaps. Regularly reviewing your policies allows you to identify any areas where you may be underinsured or where additional coverage may be necessary.
5. Policy Consolidation: If you have multiple insurance policies with different providers, reviewing them annually provides an opportunity to explore consolidating your coverage with a single provider. Bundling policies often lead to cost savings and simplifies the management of your insurance.
6. Claims History: If you’ve made any claims during the past year, reviewing your policy helps you understand how these claims might impact your future coverage and premiums. It also allows you to discuss any concerns or questions with your insurance provider.
7. Liability Coverage: With changes in your financial situation, you may need to reassess the liability coverage in your policies. Adequate liability coverage is crucial to protect your assets in the event of a lawsuit.
8. New Assets or Valuables: If you’ve acquired significant assets, valuable possessions, or made home improvements, it’s important to ensure that your insurance coverage reflects these changes adequately.
9. Policy Expirations and Renewals: Policies typically have expiration dates, and renewals may involve changes in terms or rates. By reviewing your policies before they renew, you have the chance to make adjustments or seek better options.

In summary, regular reviews of your insurance policies help you stay informed, ensure your coverage is up-to-date, and provide peace of mind knowing that you have the right protection in place for your current circumstances. It’s a proactive approach to managing your risk and financial well-being.

You can’t afford to have grey in insurance, accuracy is a must and one of ARMA Insurance Brokers’ most valued attributes. Our team will always ensure you have the right product and coverage for your situation for the very lowest premium. Contact us now!

• Phone: 02 4932 4444
• Email: maitland@armainsurance.com.au