Understanding the Importance of Regularly Reviewing Your Property and Casualty Insurance

When was the last time you reviewed your property and casualty insurance? If the answer is “back when flip phones were a thing,” it might be time for a refresh. Whether it’s your house, car, or Aunt Edna’s heirloom jewelry, a regular insurance review ensures you’re adequately protected, without paying for coverage you don’t need. Let’s take a fresh look at what you should consider, all while keeping it practical (and just a bit lighthearted).

Auto Insurance: It’s More Than a Card in Your Glovebox

If you’ve recently bought or sold a vehicle, it’s time to check whether your current insurance carrier is still your best option. Shopping around might uncover better rates or expanded coverage.

• Does your collision and comprehensive coverage reflect the current value of your car? If you’re paying top dollar to insure a car worth less than your smartphone, it’s time for an adjustment.

• Could adjusting your deductible save you money on premiums? Remember, higher deductibles mean more out-of-pocket costs when accidents happen—but lower monthly premiums could balance that risk.

• Got teen drivers? Look for good student discounts and part-time driver credits (if they’re in college), and check when they need to secure their own policy. Trust us, you’ll want to know.

  
  

Homeowners and Property Insurance: Beyond Four Walls

If you’ve bought or sold a home or added that Pinterest-worthy kitchen, you'll want to review your homeowner's policy.

• Does your coverage meet the 80% rule? Insurers may only pay a proportion of claims if your coverage is less than 80% of the home’s replacement value. In other words, being underinsured could leave you footing the bill for part of a disaster.

• Have you made significant upgrades, like a pool, a new roof, or a guest suite for your in-laws? Check that these improvements are covered and whether you need extra liability protection.

• Have property values in your area skyrocketed? If so, your coverage might lag behind.

• Installed new smoke detectors or a security system? Let your insurer know—you might qualify for a discount.

• Have you considered adjusting your deductible to match your risk tolerance better? Just like with auto insurance, higher deductibles can lower premiums.

• Condo owner? Understand the master policy’s limits and fill in the gaps with your policy.

  
  

Renters and Landlords: Coverage Counts

Whether you rent or own, don’t let gaps in coverage catch you off guard.

• Renters, don’t skip insurance just because you don’t own the building. Your personal belongings and liability need protection. Review your coverage limits and deductibles.

• Landlords, review both property and liability protection. Consider vandalism and loss-of-rent coverage. If liability worries keep you up at night, an LLC might be a smart way to shield yourself from personal exposure.

  
  

Protect Your Stuff: Personal Property and Umbrella Insurance

You might exceed the sub-limits in a standard homeowner's policy if you own valuable personal property, like jewelry, antiques, collectibles, or autographed sports memorabilia.

• Consider scheduling high-value items separately to ensure complete coverage.

• Have you created a home inventory? An itemized list with photos and serial numbers can make claims smoother and stress-free.

• Do you have enough liability protection? A personal umbrella policy can provide extra security beyond your auto and home policies. It’s like adding a safety net to your financial life—especially important if you host parties where Uncle Bob tends to get a little rowdy.

  
  

Other Considerations: Niche but Necessary

Don’t forget these important but sometimes overlooked aspects of your insurance coverage.

• Earthquake, flood, or other specialized coverage—do you have it? Standard policies often don’t cover these, so consider your geographic risks.

• Is your insurance company still the best choice? Check for bundling discounts, service ratings, and premium adjustments.

• Identity theft protection might already be included in your credit card or homeowners' policy. Review existing coverage before buying extra protection.

• Business owners, don’t forget to review your buy-sell agreements, business overhead expense insurance, and the valuation of your business interest. After all, your business deserves protection, too.

  
  

A Little Proactivity Goes a Long Way

Property and casualty insurance reviews don’t have to be a hassle. Set a calendar reminder to review your policies annually—perhaps alongside your tax filing or spring cleaning. That way, you’ll ensure your coverage keeps pace with life changes: a new car, a home upgrade, a new teen driver, or even those vintage guitars you started collecting.

And don’t be shy about reaching out to your insurance professional. They’re there to help you navigate these details, identify discounts, and close coverage gaps. Plus, it’s always good to have someone on your side if disaster strikes—someone who knows what “80% replacement coverage” really means.

In Summary

Your property and casualty insurance policies shouldn’t gather dust like last year’s tax returns. Regular reviews help ensure you’re adequately protected while potentially saving money. So, whether it’s a quick check on your car insurance, a deep dive into your homeowners policy, or just making sure your comic book collection is covered, take the time to review, adjust, and protect what matters most.

You’ll sleep easier knowing your insurance game is strong—and maybe save enough on premiums to treat yourself to that long-overdue vacation.

WHWM is here to guide you in identifying your priorities, developing a plan, and making adjustments along the way. By choosing WHWM, you're partnering with our Founder and President, Stephen Bodwell. As a CPA and CFP® professional, Stephen is committed to helping you achieve your financial goals and aspirations. Don't hesitate to take the next step toward realizing your dreams. Schedule your complimentary, no-obligation 30-minute consultation with Stephen. 

Walnut Hill Wealth Management, LLC (“WHWM”) is a registered investment advisor offering advisory services in the State of Texas and in other jurisdictions where exempt. The information provided is as of the date indicated and is subject to change.