Insurance isn’t a “set it and forget it” product. As your life changes, your insurance should change as well, making it crucial to keep your agent informed of any changes. If your agent isn’t aware of updates, you could risk being underinsured or even overpaying for coverage you no longer need! In this article, we highlight a few key life events your insurance agent needs to know about. While this isn’t an exhaustive list, it’s a great starting point to ensure you’re staying in touch with your agent when necessary.
Making a Big Purchase
Buying or selling a home, car, or recreational vehicle are obvious changes that require updating your insurance. However, you may not realize that you should also inform your agent when purchasing expensive items like antiques, electronics, jewelry, or instruments. Your homeowners or renters insurance may not fully cover these items unless you inventory them and notify your agent of their value, allowing them to ensure proper coverage is in place.
Renovating Your Home
New additions or upgrades can increase your home’s value, which may require adjusting your coverage to avoid being underinsured. Renovations such as adding a pool can also raise liability risks. Inform your agent before starting major projects, like a kitchen remodel, to ensure you’re covered during construction. Once the work is finished, update your policy to reflect your home’s new value. If you add features like a pool or hot tub, your agent may also recommend increasing your liability coverage.
Adding a Teen Driver
Adding a teen driver to your auto policy increases your risk and will likely increase your premiums. However, failing to update your policy could leave you exposed if your teen is in an accident. Add your teen to your auto insurance policy as soon as they’re licensed. Ask your agent about possible good student discounts to help lower your premium and encourage safe driving habits with your teen to reduce the likelihood of claims that could affect your insurance costs.
Marriage or Divorce
Getting married often means combining insurance policies, which could help you qualify for multi-line discounts. On the other hand, a divorce may require separating policies and adjusting coverage. Steps to update your insurance might include revising your homeowners or renters insurance to reflect shared or separate households, adding your spouse (or removing your ex-spouse) from auto insurance policies, and reviewing personal property coverage to ensure high-value wedding gifts are properly insured.
Starting a Home-Based Business
Whether you’re freelancing, crafting, or operating a full business from home, your standard homeowners policy might not provide adequate coverage. Most homeowners policies don’t cover business equipment or liability related to business activities. Discuss your home-based business with your agent to determine if you need to add an endorsement to your current policy or obtain separate business insurance.
How to Keep Your Agent in the Loop
Staying in touch with your insurance agent doesn’t have to be complicated, especially when it’s a local Farm Bureau Insurance agent who works right in your community. Regular conversations can help prevent bigger issues down the road. Here’s how to stay proactive:
- Schedule Annual Reviews: Make it a habit to meet with your agent once a year before your policy renewal. This is the perfect time to discuss any changes or updates in your life.
- Share Major Life Updates: Don’t wait for your policy renewal to notify your agent about important life events. A quick call or email ensures your coverage stays aligned with your needs.
- Be Transparent: Be open and honest with your agent about your home, auto, and other assets, including how they’re used and who’s using them. The more details your agent has, the better they can customize your policies to suit your needs.
Life happens fast, but your insurance should keep up. Keeping your insurance agent informed ensures you’re always prepared for whatever comes next. Don’t wait—reach out to your local Farm Bureau Insurance agent today and make sure your coverage aligns with your needs.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
