Review and Update Insurance Documentation

Why

Insurance needs change with life events (marriage, new child, home purchase), asset values, and evolving coverage options. An annual review ensures your policies provide adequate coverage for your current situation, your beneficiaries are up-to-date, and you’re getting competitive rates. Organized documentation is also crucial for speeding up claims processing during stressful times.

Action

• Gather Policies: Collect all current insurance policy documents (e.g., homeowners/renters, auto, life, health, disability, umbrella).
• Review Coverage:
  • Assess if coverage amounts are still appropriate for your current assets, liabilities, and needs.
  • Check for any gaps in coverage or areas where you might be over/under-insured.
• Update Beneficiaries: Verify and update beneficiaries on life insurance and any other policies with beneficiary designations (e.g., some retirement accounts).
• Home Inventory: For homeowners or renters insurance, review or update your home inventory list, including photos or videos of valuable items.
• Compare Rates: Consider getting quotes from other providers to ensure you have competitive rates for comparable coverage.
• Verify Personal Information: Ensure all personal details (names, addresses, covered individuals/items) are correct on all policies.
• Employer-Provided Insurance: Review your selections for employer-provided insurance (health, life, disability) during open enrollment or if a qualifying life event occurs.
• Document & Store:
  • Create a summary document with key policy information: policy numbers, insurer contact details, coverage effective dates, and main coverage amounts.
  • Store digital copies of all policies and your summary document securely (encrypted and backed up).
  • Keep physical copies of critical policy documents in a fireproof safe or other secure location.
• Inform Trusted Individuals: Ensure a spouse or trusted family member knows where to find this information in an emergency.
• Renewal Dates: Set calendar reminders for policy renewal dates to prompt review before auto-renewal.

Remember

Insurance is a critical part of your financial safety net. Review policies not just annually, but also after any major life changes. Keeping both digital and physical copies of your documentation is advisable.