Why Reviewing Your Insurance Policies Annually is Essential

An annual insurance review is a great chance to reflect on the big life changes you've experienced over the past year. Whether you've gotten married, welcomed a child, or expanded your home, these milestones could mean it's time to update your coverage. And the good news? You don’t have to wait for your annual review—you can adjust your policy anytime.

When reviewing your insurance, take a close look at your home, auto, life, and umbrella policies to make sure they still fit your needs and budget. Life changes and your coverage should keep up.

By reviewing your policies each year, you can ensure you’re properly protected and make any necessary updates to stay covered for whatever comes next.

Factors That Affect Your Insurance Costs  

A lot can change in a year, and many life events can impact your insurance costs, coverage options, and policy limits. Here are some key factors that may influence your premiums:  

• Getting married or divorced  

• Children graduating high school, leaving for college, or becoming independent  

• Starting a new job or hiring new employees  

• Purchasing new commercial equipment or starting a business  

• Welcoming elderly parents into your home  

• Receiving or acquiring a valuable gift  

• Losing an immediate family member  

• Paying off your mortgage  

Additionally, if you buy or sell a home, vacation property, car, or recreational vehicle, or if you renovate your home or move to a new location, it's important to update your insurance advisor. 

Major life changes often mean adjustments to your insurance coverage—and potentially your costs. Keeping your policies up to date ensures you have the right protection for your evolving needs.

Why an Annual Insurance Review Matters  

When homeowners purchase an insurance policy, they often set it and forget it. However, failing to review your coverage regularly can lead to gaps that leave you underinsured when you need protection the most.  

Take home value, for example. If you insured your home for $200,000 when you bought it, but a decade later, rebuilding costs have risen to $300,000, that’s a $100,000 gap—leaving you financially vulnerable in case of a loss.  

Major life changes, renovations, or upgrades are also key reasons to reassess your coverage. Adding new furniture, upgrading your kitchen, or remodelling your home can impact its value—and in some cases, even qualify you for discounts on your policy.  

A great way to stay on top of your coverage needs is by conducting a home inventory. Use your smartphone to take photos or videos of your belongings and create a digital record. This simple step ensures you have an accurate account of your possessions, making it easier to update your policy and file claims if needed.  

An annual insurance review isn’t just a good idea—it’s essential for keeping your home and assets properly protected.

Tips for Talking With Your Insurance Provider  

Reviewing your insurance policy doesn’t have to be a lengthy or complicated process. A simple conversation with your provider can help ensure your coverage is up to date and meets your current needs. Here are some key questions to ask:  

1. Is my policy enough to rebuild my home today?

Many homeowners don’t realize their coverage may not reflect current rebuilding costs. Construction expenses change over time, and renovations—like a kitchen or bathroom upgrade—can increase your home’s value. Even new finishes or appliances can shift your home from "standard" to "semi-custom" or "custom," affecting replacement costs. Be sure to discuss the full cost of replacing materials, appliances, and essential systems like plumbing and electrical.  

2. Does my policy cover my landscaping and outdoor features?

If you've added a sprinkler system, expanded your storage shed, installed a pool or hot tub, or upgraded your outdoor kitchen, your current policy may not fully protect these investments. Ask your insurer if your coverage needs to be adjusted to account for these additions.  

By keeping an open dialogue with your insurance provider, you can stay informed and make sure your policy evolves with your home and lifestyle.

3. How does a finished basement impact my policy?

Finishing your basement not only increases your home’s overall value but may also require extra coverage—especially for water damage. Consider adding optional water backup coverage to protect new furniture, carpeting, and other items in case of sump pump failure or drain backups.  

4. Do I need additional coverage for valuables?

Your standard policy covers personal belongings, but high-value items may need extra protection. If you own expensive jewellery, heirlooms, golf clubs, musical instruments, antiques, or artwork, ask about scheduling these items under an extended coverage plan to ensure they’re fully covered.  

5. Am I eligible for discounts?

An annual review is the perfect time to check if you qualify for discounts. You may be eligible for savings if you’ve installed a security system, smoke alarms, or a hail-resistant roof. Bundling home and auto insurance, maintaining a claim-free record, or living in a smoke-free household can also reduce your premiums.  

By asking these key questions, you can make sure your policy is up to date, cost-effective, and providing the right level of protection for your home and valuables.

Final Thoughts  

Just like regular home maintenance, reviewing your insurance coverage is an important step in protecting what is likely your biggest investment—your home. Life changes, and so do your insurance needs. Taking the time to check your policy ensures you have the right protection in place.  

Your insurance provider can help walk you through your coverage details and recommend updates based on any changes in your life. A little time spent reviewing your policy now can give you peace of mind and financial security in the future.