Too often people only look at their auto or homeowners policy when it's time to renew. Even then, their focus is on the premium price, not what protection the policy  provides.

 

To ensure your vehicle and home have the level of insurance they require, it's wise to do a comprehensive review of your policies at least once a year. Also, remember to report any changes throughout the year that may impact your insurance policies so that you are properly protected. Home renovations to your kitchen or bathroom, a finished basement, or a room addition increase the value of your home. Getting married or having a recently permitted/licensed teen driver in the house will likely affect your auto policy.

 

Home

When reviewing your home policy, here are some questions to keep in mind. Does it give me enough protection if I need to rebuild my home? Does it cover my personal belongings, furniture, and appliances? Do I have enough liability insurance? Are my valuables-such as fine jewelry and luxury watches-appropriately covered?

 

Check to see if your policy pays losses at "actual cash value," which factors in depreciation, or at "replacement cost," which reimburses you for the amount it costs to actually replace a damaged item. 

 

Also, know whether you have a "named peril" policy, which only covers your property for specific risks listed in your policy, or "all risk", which covers your property for all losses except those that are specifically excluded. A named peril policy is typically less expensive than an all risk policy. However, an all risk policy will cover losses that a named peril policy will not, such as property damage caused when a window is left open during a rainstorm.

 

Auto

When reviewing your auto policy, there are questions you should consider throughout the year. Should I raise or lower my deductible? Is my liability protection for collision and bodily injury sufficient? Does it include rental car coverage, and for how long and how much per day?

 

Also, check to see if there any discounts for which you may be eligible, including bundling your auto and home policies with one insurer, which could help lower your premium.