How to Take an Inventory of Insurance Needs

 

January is the perfect time to pause for a moment and reflect on the year that’s passed. It’s also a good time to prepare for the one ahead.

Taking an inventory of your insurance needs is a great way to make sure that your hard work and New Year’s resolutions are protected against fiscal uncertainty in the coming months.

Types of insurance

First, you should determine what forms of insurance are required.

The most common are auto and homeowners insurance, but don’t stop there.

Many people find that they benefit from additional forms of financial protection for small-business enterprises, as well as umbrella or supplemental policies for valuables.

Who is to be insured

Second, assess who is to be insured, the amounts of insurance and beneficiaries.

Changes to marital status, employment or other lifestyle-related concerns can have a dramatic impact on insurance coverage.

It’s important to update policies to reflect changes that have taken place over the past year. Inform your agent of any changes that have taken place to obtain the most up-to-date quotes.

How much to be insured?

Third, you should update insurance amounts.

Inflation takes a heavy toll on the cost of living, so it’s essential to update coverage amounts on a regular basis.

Changes to employment, health or even other forms of coverage can also increase or decrease the need for certain types of insurance. Ask your agent about other forms of coverage that may supplement existing policies or even replace employer-sponsored policies at a better price.

Fourth, you should document and take photographs of belongings. If you bought or sold business assets, personal belongings or other items, take photographs and record the item number. A documented inventory comes in handy during a loss or claim.