The Importance of Policy Reviews
Written by Matt Hall, Owner – Hall Agency, Farmers Insurance
Are You Covered for Life’s What-Ifs?
It’s estimated that 16% of people on the road in the state of Missouri are driving without insurance. Are you and your assets protected if one of those motorists causes an accident? When was the last time you had a review with your insurance agent to make sure you are covered in a worst-case scenario?
How Do Policy Reviews Work?
A comprehensive policy review usually starts by evaluating a person’s current assets. This includes their home, vehicles, retirement accounts, savings, and other valuables. Once those are identified, each insurance policy is reviewed and compared to the list of assets to identify potential gaps in coverage or policies that may be outdated or incorrectly written.
Certain life events often signal gaps in coverage and the need for an updated review. These include marriage, divorce, the birth or death of a family member, home renovations, or replacing a vehicle. Even smaller changes, such as installing a water detection system or starting a home-based business, can affect coverage. Keeping policies accurate and up to date is critical, especially if a claim needs to be filed.
Aspects to Consider During Policy Assessments
Picture this: You surprise your grandkids with a trampoline for their birthday, something they have wanted for a long time. You have it set up in your backyard and anticipate the excitement and joy in their eyes. But your neighbor’s child sees it and also gets excited. So excited in fact, they decide to sneak over and jump on it themselves. Unfortunately, they get injured on your property, and the neighbors sue you for damages because of injuries sustained and medical bills.
You call your insurance agent expecting them to help, but lo and behold, because your yard was not fenced and you did not disclose the extra risk, there is no coverage. Now you are on the hook for hundreds, if not thousands, of dollars.
Real-life scenarios like this are more common than most expect. A regular policy review can help uncover potential risks and make sure coverage aligns with current circumstances before a costly incident occurs.
Creating a Policy Review Checklist
A thorough policy review starts with understanding what you have and what you need. The purpose here is to make sure your liability coverage aligns with your current assets and life circumstances, helping you avoid unwanted surprises if a claim ever arises. Once the basics are in place, it becomes a matter of weighing cost versus risk to see where adjustments could offer both protection and potential savings.
Here are a few key steps to guide the process:
- Gather the declaration pages for all current insurance policies.
- Make a list of assets, including your home, vehicles, retirement accounts, savings, and valuables.
- Compare coverage to assets to ensure your liability limits meet or exceed what you own.
- Review any recent life changes, such as a marriage, home renovation, or vehicle purchase, that could impact your insurance needs.
- Consider cost-saving adjustments, like:
- Raising your deductibles if you have healthy savings and are comfortable taking on more out-of-pocket risk. For example, accepting an extra $2,500 in deductibles could save $500 a year on your insurance premiums.
- If a car is over 10 years old and fully paid off, you may decide that comprehensive and collision coverage is no longer necessary.
Each situation is unique, but walking through this checklist helps ensure your coverage continues to match your life.
Determining Your Policy Performance
Insurance is about managing risk – either you accept the risk of loss or you pay the insurance company to assume the risk. The solution is to figure out what coverage is currently in place, determine what coverage should be in place, and then decide what level of risk feels comfortable.
A review can help identify areas where coverage may be lacking or where adjustments can offer better protection or cost savings. Working with a licensed insurance professional, such as the Matt Hall Agency, can provide the insight and guidance needed to make sure policies align with current needs and goals.
About Hall Agency Farmer’s Insurance
Matt Hall has been in the insurance industry for over seven years and has owned and operated his agency alongside his wife for more than five. It’s truly a family business, with their kids often coming in to help during school breaks and weekends. That family-first mindset carries through in the way the agency cares for every client.
About Senior Learning Institute
The Senior Learning Institute (SLI) is dedicated to providing “the truth about everything senior” to older adults and their families. Through free monthly educational seminars held across the St. Louis area, SLI connects seniors and their advocates with trusted, unbiased information to support informed decision-making.
SLI is proud to partner with a select group of vetted businesses and organizations that share our mission of serving the senior community. These partnerships allow us to provide valuable resources and advocacy, ensuring seniors have access to expert guidance and services when they need it most. By bringing together industry leaders, municipalities, and educational resources, SLI empowers older adults to navigate life transitions with confidence and ease.