The annual insurance check-up

Is your insurance still right for you? Ten questions to ask about your insurance coverage

Insurance is there to help you bounce back when something unexpected happens, but only if your coverage truly fits your life. In the Pacific Northwest, heavy rain and flooding are common, yet many people are surprised to learn that flood damage to a home isn’t covered by a standard homeowners policy. And if floodwater damages your car, that’s only covered if you’ve added optional comprehensive auto coverage. These are the kinds of gaps people often don’t discover until it’s too late, which is why taking time to review your insurance matters.

Some insurance is required, like auto liability coverage for drivers, homeowners insurance if you have a mortgage, or renters insurance required by some landlords. But many important protections are optional. These optional coverages can play a huge role in how well you’re able to recover after a storm, accident, or other major life disruption.

A simple annual check-in with your insurance agent or company can help make sure your coverage still matches your needs. It’s a chance to ask questions, update information, and adjust limits if anything in your life has changed.

“It pays to get an insurance checkup with your agent or company at least once a year,” said Kenton Brine, president of the NW Insurance Council. “Life doesn’t stay the same — families grow, cars change, home costs increase, and even our climate is shifting. Your insurance should keep up with those changes.

The NW Insurance Council recommends reviewing your insurance policies once a year, and anytime you experience a life change, big or small, so you’re better prepared before the next surprise comes along.

Questions to ask during your annual insurance checkup

To help you get started, the NW Insurance Council suggests asking these 10 questions during an annual insurance review:

1. How does my coverage work and what’s excluded?
   Ask what is and isn’t covered under your homeowners or renters policy, including your deductibles (the amount you pay out-of-pocket to repair or replace items lost or damaged in your insurance claim). Also, ask what your policies don’t cover. For example, standard homeowners insurance typically does not cover floods, earthquakes, landslides, or sinkholes, but separate policies may be available.
2. Are there ways to lower my premiums?
   Ask about discounts for bundling policies, installing safety devices like smoke detectors or alarms, or choosing higher deductibles.
3. Do I have enough coverage to rebuild my home today?
   Many homeowners believe that the coverage limits of their homeowners insurance policy are linked to the market value of their home, but “actual cash value” policies may not keep up with rising costs for building materials and labor in your community. Ask about “replacement cost coverage,” which can guarantee your entire home and contents will be restored to original condition if destroyed, even if costs have risen over time.
4. Do I need extra coverage for valuables?
   Items like jewelry, fine art, bicycles, or sports equipment often have limited coverage. Additional protection, such as a floater or endorsement, can be purchased in addition to your homeowners or renters policy to cover the full value of your jewelry or other expensive items.
5. Am I adequately protected if someone is injured on my property?
   Review your liability limits and consider whether an umbrella policy is appropriate to protect your assets if a serious injury claim occurs.
6. Do teen drivers change my auto insurance needs?
   Teen drivers should be disclosed and added to your policy. Failing to do so could result in reduced coverage or denied claims. Also, it’s generally less expensive to add them to your own auto insurance policy rather than buy separate policies for them.  Vehicle choice and multi-policy discounts can also impact costs.
7. How does college affect coverage for my kids?
   Students living in dorms may be covered under a parent’s policy, but higher limits may be needed, especially if they have expensive items like high-end laptops or bicycles. Off-campus students usually need renters insurance, and “students living away” may qualify for auto insurance discounts.
8. Will a job change or retirement affect my insurance?
   Reduced commuting may lower auto premiums, while changes in employer-provided life insurance may require replacement coverage.
9. Does marriage or divorce change my insurance needs?
   Married couples may qualify for discounts by combining policies. Divorce typically requires separate auto and homeowners or renters policies.
10. How do I file a claim, and what should I expect?
    Knowing your insurance company’s process for filing a claim and the typical timeline for reimbursement will help reduce stress during the claims process. Many insurers offer online claims filing and mobile apps to document damage quickly.

For more information or help finding insurance resources, contact the Northwest Insurance Council at (800) 664-4942.