Article in brief:
- What is National Insurance Awareness Day? National Insurance Awareness Day is a nationally recognized holiday that you should use as your annual reminder to review and update your insurance policies with your agent.
- How often should I update my insurance? Personal lines policyholders should plan to make updates annually, while commercial policyholders should plan quarterly or biannual meetings with their agents, depending on the size of the business.
- What types of changes should personal lines policyholders update an agent about? Every significant life change can have an impact on your coverage needs, including updates on your accommodation, cars, drivers, personal property, jobs and more.
- What types of changes should policyholders on commercial lines update an agent about? Any changes that may affect prices should be reported to an agent, such as an increase / decrease in sales, number of employees, use of company car, employees working from home, etc.
- How do I update my insurance? Contact your agent and make an appointment to sit down and discuss your policies in detail. They should be able to guide the conversation and make sure you have fixed any relevant changes.
Many policyholders adopt a “put it and forget it”; mindset when it comes to their coverage. They expect that once they have done their due diligence to ensure that their key assets are insured, they can wait until they need to file a claim before worrying about their insurance policies.
Unfortunately, this practice is ineffective in properly managing your insurance coverage. In fact, many insurance experts recommend that you review your insurance policies at least once a year, if not more often.
“There are so many people who have not reviewed their coverage in a long time,” said Pat Filipkowski, Personal Lines Underwriting Manager at Central insurance. “And if you do not have it, you should make it a priority to call your agent, review your coverage and make sure you are protected from anything that may come up.”
What is National Insurance Awareness Day?
Observed on June 28 every year, National Insurance Awareness Day is a holiday that is recognized by both insurance companies, agents and policyholders. On this day, these groups take a moment to acknowledge the safety and peace of mind that comes with proper insurance from a trusted carrier.
“National Insurance Awareness Day serves as a reminder to review your insurance and to make sure everything you have is properly covered.”
– Pat Filipkowski, Personal Lines Underwriting Manager at Central insurance
At Central, we challenge our policyholders to use this annual holiday as more than just a passing feast; we encourage them to use National Insurance Awareness Day as a strategic reminder to review their existing policies and make necessary updates to reflect any changes over the past year.
Read on to explore how often different policyholders should update their policies, what types of changes should be reported, and how to initiate that conversation with your agent.
How often should I update my insurance?
For customers with personal lines, an annual review of your existing policies is required to ensure that you are adequately covered.
This is because “a lot can happen in a year,” says Filipkowski. “You want to make sure you have your policy reviewed regularly and that you and your agent look at everything that has changed, whether it’s a new car, a new job, a new driver in your household, etc.”
When it comes to commercial linesSmaller companies should also plan to review and update their policies once a year, while larger companies should consider an even more rigorous review process.
“For larger insured commercial clients or just larger companies in general, we recommend that you check in quarterly or at least twice a year with their agent, just to make sure everything is accounted for,” says Ruth Eanes, Commercial Underwriting Manager at Central insurance.
What type of changes should personal lines policyholders update an agent about?
Although an annual audit is recommended for personal lines, Filipkowski emphasizes that you should notify your agent when you experience it. a significant life change.
Significant life changes to report
1. Your home. If you are buying a new home, making changes or additions to your existing home, buying a second property or house or starting to rent out a new property, you want to keep your insurance agent up to date. “We have seen many people build their homes during the pandemic,” he says, “and this is something to note with your agent because you want to make sure the value we have set for your house is still correct.”
2. Your car. Aside from buying, leasing or even selling a vehicle, the most important aspect to note is when it comes to your automobile drivers who will be using them. “If you have a new driver in the house … you need to make sure they are on your insurance so that they are covered when they drive your cars,” says Filipkowski. Similarly, he recommends that you note if any older drivers use your vehicles, as they are often at greater risk of accidents, and your coverage may need to be updated accordingly.
Remember: Younger drivers taking Central’s Teen Smart Driving Program or older drivers who participate in defensive driving courses can both lower prices when it comes to car policies. Be sure to update your agent if these changes have occurred as well.
3. Your job. Keeping your agent up to date with any career changes is also an important aspect of your policy reviews. Factors such as whether you use (or no longer use) a company car, drive a different number of miles to work, etc. can all affect your prices.
4. Your purchases. “You want to be sure that if you’ve made some big purchases recently or if there’s something you already own that you want to cover, you’re running it by your agent as well,” says Filipkowski. Insuring an engagement or wedding ring, for example, is an often overlooked aspect of wedding preparation and yet a crucial aspect in the event of loss or theft.
Other factors to consider
In addition to these changes and life updates, Filipkowski also emphasizes the importance of Make sure your current insurance policy continues to cover any losses you may have.
“Especially with inflation right now, things costs more today than they did a year ago, he says. “We have seen cost of house and the cost of switching houses has increased dramatically over the past year, so you need to make sure you update your policy as needed and that you still have enough coverage there in the event of an accident. ”
Do not forget: Personal policyholders are not the only customers who need to consider the impact of inflation on their insurance policies. Commercial customers need to stay up to date on these trends and talk to their agent about potential impact on their policies.
The rising costs of bodily injury coverage and medical bills are also important to keep in mind when deciding how much to increase your coverage from year to year.
What kind of changes should commercial policyholders update an agent on?
Like private customers, commercial policyholders should update their insurance agent if their organization experiences major changes. These may include:
- Increased or reduced use of company car among employees.
- Work from home trends among employees.
- Increase or decrease sales.
- Increase or decrease the number of employees.
Updating your coverage ensures that your employees and assets are safe and that you only pay the expected amount for your insurance. This is because failure to report significant changes such as those listed above may result in unexpected charges at the end of the year following a standard audit.
“If a carrier were to go out and see what a company’s sales are and how many employees they have, and they discover that they have earned [more than originally reported on their policy], they could be charged an extra premium to cover the extra exposure, says Eanes. “It is important for commercial policyholders to know that they can update their insurance over time so that they can avoid these types of bills at the end of an insurance period.”
Remember: Commercial customers should review their policies according to the schedule to keep track of exclusions. “It is important for our policyholders to regularly ensure that they have all the coverage they need and that there are no exceptions to their insurance,” says Eanes. “Being aware of these exceptions gives customers time to make sure they are adequately insured.”
Do not forget that your insurance agent is a reliable partner when it comes to keeping your business going. They are there to ensure that you are protected, even when you are experiencing inevitable changes in your organization, and to inform you about new products and trends that may be most relevant to you.
For example, Eanes explains “one thing that insureds need to check right now is that they have cyber coverage. With the pandemic and everyone working from home, it is important to make sure that everyone is adequately covered in the event of a cyber attack. ”
This is the kind of insight your agent can provide when working with you to keep your business thriving.
How do I update my insurance?
The process of updating your insurance is simple. Start by booking a phone call or meeting with your independent insurance agent. At Central, we always recommend that our customers take the time to sit down with their agent face to face whenever possible, as this helps streamline conversations and build trust between the two parties.
During the scheduled conversation with your agent, address all aspects of your personal life or business that you want to make sure they are up to date on. Provide a list of prepared questions, or consult your agent for guidance on what changes your policies may need depending on those changes.
Professional tips: Do not be afraid to share changes in your life that you think may be relevant to your insurance coverage. Our agents would like all the information regarding updating your coverage.
From there, your insurance agent will do his magic and work out any changes to your insurance. As a reminder, the most important updates you can get from this type of meeting include:
- Changes in prices.
- Additional exceptions to your policies (for commercial customers).
- Coverage limit updates (due to global financial trends).
- And more.
“Only you know what you need covered and what comfort level you have with all your property, belongings, drivers, cars and so on,” says Filipkowski. “So bring everything you can think of to the table when you meet your agent. Because yes, they are there to guide you and ask the right questions, but in the end, the most important thing is to you feel comfortable with the coverage on your insurance. ”
Celebrate National Insurance Awareness Day by updating your insurance policies today.
Do not fall for the “put it and forget it” insurance trap. Make sure to check your insurance policies regularly – whether it is on National Insurance Day or otherwise – and take control of your peace of mind.
“There are a lot of people who have not reviewed their coverage since signing their first policy because they simply do not know when to address it or not,” says Filipikowski. “If it sounds like you, do not wait. Call your agent today and make sure you are protected.”
Already insured with Central? Contact your agent today to start discussing your coverage options. Not covered by Central yet? Explore ours comprehensive coverage options and find an agent in your area today.