The importance of personal insurance policy reviews

Home remodel? New baby? New car? Life changes fast, and your insurance should keep up.

Insurance can help provide financial protection when the unexpected happens. But the real question is: Do you still have coverage that fits the life you’re living today?

At American Family Insurance, we believe it’s important for you to feel confident about your insurance coverage. So, let’s take a look at why you should review your insurance policies annually.

What is a personal insurance review?

A personal insurance review is time set aside with your agent to look at what you have today, what’s changed in your life, and where you may want to adjust coverage.

During a review, your agent can help you:

• Reassess your policies and limits
• Identify possible gaps in coverage
• Understand what certain coverages would (and wouldn’t) help with
• Remove coverage you may no longer need
• Check for discounts you may qualify for*

Why to review your personal insurance

Here are some common reasons people schedule a review—and why they matter.

1. You made improvements to your home

A renovation may increase your home’s value and your cost to rebuild. Even smaller projects can be worth discussing with your agent.

Consider a review if you’ve:

• Finished a basement or remodeled a kitchen
• Added or expanded a room
• Built or added a shed, gazebo, or other structure
• Installed a hot tub or added a pool

If you don’t make your agent aware of changes, you might not have the coverage you expect when you need it.

2. You’ve added more valuable belongings

Over time, it’s easy to accumulate higher-value items—from costly jewelry and collectibles to upgraded furniture and appliances.

A personal insurance review is a great time to:

• Create or update a home inventory
• Double-check that your personal property coverage still fits what you own

And if you bought a new recreational vehicle, like a boat, motorcycle, RV, or camper, your agent can guide you through coverage options to help protect it.

3. You want extra liability protection

Sometimes the liability limits on a home or auto policy may not feel like enough, especially if your assets or responsibilities have grown.

During your review, ask your agent about umbrella insurance, which can provide additional liability coverage above the limits of your underlying auto and/or property policies. An umbrella policy may even extend liability protection over recreational vehicles like a boat, motorcycle, ATV/UTV, or snowmobile.

Umbrella insurance helps provide an extra sense of security if you experience a large loss that could lead to serious financial consequences.

4. You’ve had a major life change

Life changes often come with new financial responsibilities, and that can affect your life insurance needs. Have any of these events happened to you over the past year?

• Got married
• Bought a new vehicle
• Welcomed a new child
• Started a new job
• Became an empty nester
• A parent’s health condition changed

These are all good reasons to schedule a review to help ensure your life insurance will provide some financial support for your loved ones if you pass away.

In addition, say you just bought a new home or took on a bigger mortgage. You may want to review whether your current life insurance still fits your family’s needs.

And don’t forget, purchasing life insurance for a new child or grandchild may be a smart idea since it often costs less when someone is young. Here are even more reasons why you should get life insurance for children.

5. You added smart-home technology

Smart home devices can make homes more connected, energy efficient, and—in many cases—safer and more secure.

If you’ve installed smart technology, like water sensors, a security system, or a thermostat, check with your agent. At American Family Insurance, you could qualify for our Safe, Secure, Smart Home discount.*

6. You want to bundle and simplify

Another good reason to set up a personal insurance review is that your agent can check to see whether you’re taking advantage of bundled insurance discounts.* When you bundle your insurance at American Family, you get the convenience of having multiple policies under one roof, and you may be eligible for additional discounts on policies, including auto, home, motorcycle, boat, and other recreational vehicles.

7. You want to double-check your discounts

Insurance discounts can change as your life changes. A review can help you confirm what you’re already receiving and spot additional opportunities you may qualify for.*

For example, say you changed jobs and now work from home. Or maybe you moved on campus and drive less. At American Family Insurance, you could take advantage of MilesMyWay, a usage-based insurance program that rewards low-mileage drivers with savings up to 25% on auto insurance for driving 20 miles or less per day.**

You could also increase your savings potential with DriveMyWay. This usage-based car insurance program personalizes your rate based on your driving habits. The safer you drive, the more you may save—which is 10% to 35% for most customers.***

Build confidence in your coverage

A personal insurance review isn’t just about more coverage. It’s about the right coverage for your life today.

During your review, your agent can also walk through optional coverages, such as:

• Water backup and sump pump failure. Add-on coverage that may help pay for damages a standard homeowners policy doesn’t cover.
• Scheduled personal property. Coverage you can add to your homeowners policy to provide more complete protection for higher-value items.
• Identity theft protection. A homeowners add-on to help protect you from high costs related to restoring your identity.

Explore your insurance options today

Wondering when to review your personal insurance? If it’s been a while since you reviewed your policies, or if life’s changed in meaningful ways, now is a great time. Connect with your American Family Insurance agent today to schedule your review and make sure your coverage still matches your unique situation.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

*Discount, savings and product eligibility varies based on the way you purchase insurance, by state, property type and policy form. Discounts may not apply to all coverages on an auto or home policy. Discounts do not apply to life policies. Exclusions may apply.

**MilesMyWay savings apply only to the following variable coverages, which are typical for most auto policies: bodily injury liability, property damage liability, collision and comprehensive, medical expense, underinsured and uninsured and personal injury protection. Additionally, the savings do not apply to fixed fees that are part of your policy. Savings are applied to the vehicle-specific premium, not a customer’s overall premium. Availability varies based on the way you purchase insurance and by state. High mileage driving may result in you losing your discount. Exclusions may apply.

***DriveMyWay plans & discounts may vary by state. Rate will vary based on driving behavior. Unsafe driving behaviors may increase your rate. Products, pricing, and availability vary based on the way you purchase insurance and by state, vehicle type, policy form and company underwriting the auto policy. Some restrictions may apply. The DriveMyWay rate factor applies only to these coverages, which are typical for most auto policies: bodily injury liability, property damage liability, collision and comprehensive, medical expense and personal injury protection. Additionally, the rate factor does not apply to fixed fees that are part of the policy. Customer driving data from the DriveMyWay & KnowYourDrive program were used to inform rate structure. If you choose to unenroll anytime after the trial period ends, we’ll use your latest program score when calculating your rate at future renewals.

Life insurance products underwritten by American Family Life Insurance Company, 6000 American Parkway, Madison, WI 53783.