January is the perfect time to review your insurance

Insurance premiums are on the rise for many Americans who are already battling higher premiums due to inflation.

According to a recent survey by Trusted Choice, which represents members of America’s independent insurance agents and brokers, approximately 70% of people actively review their insurance policies to save money.

FOX Business asked experts why January is the ideal time to look for savings and review insurance plans and policies.

Evaluate your insurance coverage in January

The first month of the year is considered the best month to review your insurance policy.

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“First, it’s the start of a new year, and it’s a good time to evaluate your financial and personal situation,” said John, an independent agent at Trusted Choice, director of Trusted Choice, and CEO of Ohio said Matt Simon, president of CoverLink Insurance in Columbus.

“Over the past year, you may have experienced changes in your life or financial circumstances that may have affected your insurance needs.” Also, many insurance policies renew annually, so you may not have coverage in January. He said now is the perfect time to see if it fits your current needs and circumstances.

The third reason, according to Simon, is that many people are preparing or reviewing their annual budgets, and the cost of insurance is often a large expense, so January is not only a time to review your expenses, but also to make sure that your coverage is That means it’s the perfect time to make sure it’s appropriate.

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Coverage prioritization

• Automotive: Covers potential accidents and liability on the road.
• Homeowners or Renters Insurance: Insurance to protect your residence and personal property.
• Umbrella Liability: Provides an additional layer of liability protection when your underlying home, renters, auto, etc. insurance is insufficient to cover a claim.
• Life insurance: To provide financial security to your loved ones who depend on you.

How do external factors such as natural disasters and supply chain issues impact policy?

Nancy Jarmond, executive director of risk management and education at Alexandria, Va.-based Independent Insurance Agents & Brokers of America, said, “Factors can affect insurance policies in a variety of ways,” he told FOX Business.

Mercy Worldwide volunteers survey a burnt-out apartment complex in the aftermath of a wildfire in Lahaina, west Maui, Hawaii, on August 12, 2023. (Yuki Iwamura/AFP via Getty Images/Getty Images)

“For example, if you live in an area prone to hurricanes or wildfires, your property and casualty insurance premiums and deductibles may increase,” Jarmond says.

And as the weather changes, flood insurance has become a big issue, she said.

“Standard homeowners insurance does not cover flooding,” she pointed out.

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On July 28, water flooded homes along Gross Loop off KY-15 from the North Fork of the Kentucky River in Jackson, Kentucky. (Arden S. Burns/The Washington Post via Getty Images/Getty Images)

Loretta L. Waters, spokeswoman for the Insurance Information Institute, emphasizes that if you live in a flood-prone area, it is essential to purchase flood insurance.

“Homeowner’s insurance does not cover flooding, but flood insurance is available through the federal government’s National Flood Insurance Program and from private insurance companies,” she said.

The groom puts the wedding ring on the bride’s finger. (image/image)

Life events that trigger a review of insurance coverage

• Marriage or divorce?
• Birth or adoption of a child
• Purchase of a house or renovation such as kitchen remodeling or room addition
• Changes in employment or income
• Significant medical condition or change in health condition
• retirement
• Acquisition of valuable assets or investments
• Starting a business, including a home business
• Family members move in and out of the home, or a family member dies and the property is left vacant or held in trust.
• Youthful Driver will be added to your insurance

Workers install electrical wiring during home renovation. (image/image)

Given the rising costs, is it advisable to bundle insurance?

CoverLink’s Simon says that bundling multiple insurance policies, such as car and home insurance, can often lead to cost savings through discounts offered by insurance companies.

Used cars for sale at Fast Tracks Auto dealership in El Cerrito, California, on May 6th. (Justin Sullivan/Getty Images/Getty Images)

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However, he cautioned that it’s important to review the individual policies in the bundle to ensure they meet your needs and offer a competitive price.

“It’s important to assess the details of your insurance requirements, as it’s not always recommended in every situation,” Simon added.