Many of us try to make sure everything is in order at the end of the year. Sometimes we clean out our closets and collect our tax documents. We check our investments and wrap up any other year-end financial concerns. As part of our general year-end housekeeping, we should also review our insurance portfolio and make sure it’s in good shape for the upcoming year.
This should be an annual task, to keep your household economy running smoothly. An insurance review can also be an emotionally meaningful task, that helps you take stock of all of the life changes and achievements you and your loved ones have experienced in the past year.
What’s An Insurance Portfolio?
An insurance portfolio is the culmination of all the insurance products you hold.
How Do I Do An Insurance Portfolio Review?
First, you should collect all your policy documents. Then you check out every individual policy and assess if that policy is meeting your current needs.
Start With Your Home Or Renter’s Insurance.
Did you install a pool this year or finally get your kids that trampoline they’ve been begging for? Certain home additions could create a need for additional liability coverage.
Did you remodel the interior or exterior of your home over the past year or update a major home system like your HVAC or sanitation?
Did this year’s tax assessments show that your home has increased in value, maybe because real estate prices went up in your area? Does your current insurance policy cover the full value of your home? If your home was destroyed by a fire or tornado, would your current policy provide enough capital to start over in the same area, in a home of a similar size and comfort-level? If not, you may want to beef up your home insurance.
Did you get a high-value holiday gift that needs to be listed individually on an inland marine policy?
Next, Does Your Auto Policy Still Meet Your Needs?
Did your teen get a driver’s license this year? If they plan to drive your car, add them as an additional driver on your insurance policy.
Did you purchase a new, more expensive car? You may want to increase your auto coverage. Or, as your car ages, you may want to drop your coverage to liability-only. Check the Kelly Blue Book value on your car before doing this, to make sure you can afford to replace the vehicle out-of-pocket, should it be involved in a collision.
Did the percentage of uninsured motorists in Arkansas rise significantly this year? If you don’t have uninsured motorist coverage, you may want to add it.
Do You Have Enough Life Insurance?
Life insurance needs can change from year-to-year. Some of the life events that could influence your insurance needs include having a new baby, adopting a child, or a child graduating from college or high school. Getting married, moving to a new home, retiring, changing jobs, or the death of a spouse or dependent could also influence your coverage needs.
What does your retirement portfolio look like this year? With interest rates so low, you may want to consider adding another type of investment product to your portfolio.
If you’re not sure how much life insurance you need, check out our guide to purchasing life insurance, which covers life insurance as a financial investment.
Do You Need Other Types of Insurance in Your Portfolio?
Did you move to an area that frequently floods? Home and renter’s insurance won’t cover flood damage, so you may want to consider a flood policy.
Did you purchase a boat, motorcycle or some other type of nontraditional vehicle that needs to be insured?
Ready To Review Your Insurance Portfolio?
One of our local agents would love to discuss your policies and answer any questions that come up during your review. Get in touch today!