When Is It Time to Shop Around for Insurance?

Most people don’t think much about their insurance unless something goes wrong. Policies renew automatically, premiums get paid, and it’s easy to leave everything on autopilot.

The problem with that approach is that our needs change over time, and insurance companies regularly adjust pricing and coverage details. With insurance, small differences in coverage   can mean big changes to future financial outcomes.

My husband and I recently had our own coverage reviewed by an independent insurance agent and discovered some meaningful gaps, despite reviewing it a few years earlier. For example, we had wind and hail coverage, but the deductible was much higher than our standard deductible and the roof was not covered at full replacement cost. That could have left us paying a significant portion of a roof replacement ourselves.

When people run into problems, it usually isn’t because they had no insurance at all. More often, it’s because:

• Coverage limits were too low.
• Deductibles were higher than expected.
• The policy did not work as expected.

WHEN SHOULD YOU REVIEW YOUR INSURANCE?

A good rule of thumb is to review your insurance every few years or after major life changes.

It may be time to revisit your policies if:

• It’s been a few years since you last shopped around.
• Your premiums have increased significantly.
• You renovate or improve your home.
• Your income or assets have increased.
• You get married or divorced.
• You have a teen driver to add to the policy.

Even if you stay with your current insurance company, reviewing your coverage periodically can ensure it still fits your needs and that no major changes have crept in over time.

AUTO INSURANCE: COMMON GAPS

A lot of people carry the same auto coverage for years without revisiting whether the limits still make sense. Here are some of the most common issues people run into:

• Liability limits that are too low.

State minimum coverage is often nowhere near enough to fully protect you in a serious accident involving injuries or major property damage.

• Limited uninsured or underinsured motorist coverage.

If you’re involved in an accident with someone with little or no insurance, this coverage protects you from paying medical bills and repair costs yourself.

• High deductibles without enough cash reserves.

Choosing a higher deductible can lower your premium, but it also means paying more out of pocket if you have a claim. It’s important to make sure the deductible is an amount you could realistically cover.

• Assumptions about collision coverage.

Damage from hail, theft, vandalism, or hitting an animal generally falls under comprehensive coverage, not collision coverage. Some people are surprised to learn those events may not be covered if comprehensive coverage was removed to save money.

HOMEOWNERS INSURANCE: COMMON GAPS

Homeowners insurance tends to cause the most confusion because many of the important details are buried in the policy language.

Deductibles

Many homeowners don’t realize they may have separate deductibles for weather claims like wind or hail. These deductibles are often percentage-based instead of a flat dollar amount.

For example, a 2% deductible on a $500,000 home means you would pay the first $10,000 before insurance starts covering the claim.

That’s a very different situation than having a standard $1,000 deductible.

Replacement Cost vs. Actual Cash Value

When you have a claim, how the insurance company values the loss can make a very big difference.

• Replacement cost coverage helps pay to replace damaged items with new materials of similar quality.
• Actual cash value coverage reduces the payout based on depreciation, meaning the age and condition of the item are taken into account.

For example, if a basement flood destroys your furniture, replacement cost coverage would generally help pay to replace it with new items. Actual cash value coverage would only reimburse what the furniture was worth at the time of the loss, after depreciation.

Dwelling Coverage Limits

Construction and labor costs have increased significantly in recent years. If your policy hasn’t been reviewed in a while, your home may no longer be insured for what it would cost to rebuild today.

Other Common Gaps

• Jewelry or collectibles
• Sewer backup
• Flood damage
• Home-based businesses

These may require endorsements or separate policies.

UMBRELLA INSURANCE: EXTRA LIABILITY PROTECTION

Umbrella insurance provides additional liability coverage above your auto and homeowners policies.

It can become especially important if you:

• Have significant savings or assets.
• Own rental properties.
• Have a pool or recreational vehicles.
• Have higher income or public visibility.
• Have teenage children

Umbrella policies are often relatively affordable, but many people overlook them until after a major claim or lawsuit occurs.

WHAT SHOULD YOU DO NOW?

If you’re unsure what your policies actually cover, it may be worth having them reviewed by an independent insurance agent. Independent agents can often compare coverage across multiple companies and help identify important gaps, exclusions, or areas where coverage may no longer fit your situation.

Insurance is one part of a broader financial plan. The goal is not to have the cheapest policy or the most coverage possible, but to make sure your protection aligns with your financial situation and the risks you’re comfortable taking.

As a fee-only firm, we do not sell insurance or receive commissions, but we can help you think through priorities and connect you with trusted professionals for a detailed review.