Policy renewal is not just a billing statement or a price check. Every year, when your policies renew, take the time to ensure your insurance coverage still matches your real world risk. Assets are acquired and disposed of. Exposures rise and fall. Policy language is added, removed, and changed. Reviewing policies at renewal can prevent surprises at claim time and keep coverage gaps or unnecessary out-of-pocket costs to a minimum.
Working with a professional advisor like Bowthorpe & Associates Insurance Producers can help ensure your renewal decisions are based on the full picture, rather than reacting to statements and proposals.
RENEWAL CHECKLIST & THINGS TO LOOK FOR WHEN POLICIES RENEW
WHY Review Policies at Renewal?
You’ve likely not had a full insurance review since your policies were placed. Policies are bought and sold based on information gathered at that time. Improvements to property, additions to the business, new drivers or jewelry, and even replacement cost increases can creep up on you without adjusting policy limits to keep pace.
Carriers also make changes to policies at renewal time. Endorsements can be added or deleted. Exclusions get broader. Deductibles can increase. Your renewal documents should be reviewed line by line to ensure coverage matches your expectation.
CONFIRM COVERAGE LIMITS & DEDUCTIBLES ARE APPROPRIATE FOR YOUR NEEDS
Look over limits on all policies to confirm they’re still appropriate. Property limits should match current replacement cost values instead of what you paid or stale estimates provided by agents long gone. Liability limits should be based upon your actual assets and exposure levels, rather than automatically agreeing to the carrier’s minimum recommendation.
Deductibles should get a review as well. Increasing deductibles can lower premium, but only if you can comfortably absorb the higher out of pocket expense should a claim occur. Renewal is the perfect time to see if your deductible is still proper.
If you own an umbrella policy, ensure that all underlying policies have been updated to the required limits. You should also confirm that the umbrella would apply to every exposure it’s intended to protect.
REVIEW ANY ENDORSEMENTS FOR LIMITATIONS TO COVERAGE
Do you know what endorsements are attached to your policies? They may add, delete, or restrict coverage. Review any new endorsements added at renewal. Make sure they don’t alter coverage in undesirable ways. Scan your exclusions as well. Many losses sneak into water, cyber, business operations, and rental property exclusions.
Certain risks are never included automatically. Flood and earthquake are common examples. Some cyber risks also must be added specifically. Take note of any new exposures that could require additional coverage at renewal.
UNDERSTAND WHAT CAUSES YOUR PREMIUM TO CHANGE
Decipher why your premium increased, decreased or stayed the same. Ask your agent to break down the renewal quote so you understand how much of the change is due to higher exposures versus industry wide rate changes or claims.
Once you know the cause, you can work to correct it, if needed. Ask if changing deductibles, tweaking coverage, or loss control measures could lower premium without sacrificing protection.
If deductibles are increased, does improving other areas of coverage allow you to shift risk back to the carrier and offset premium increases.
REQUEST A REVIEW OF CLAIMS HISTORY
Your prior claims history is a major factor in renewal quotes. Take time to review claims from the past few years. Ongoing patterns of smaller losses often impact rates more than one large claim.
If you have made repairs or implemented safety measures since claims occurred, provide this documentation as well. Context can influence how underwriters view your risks and improve your renewal results.
ACCOUNT FOR LIFE OR BUSINESS CHANGES
Renewal isn’t just looking at what’s changed with your carrier. Take time to ensure your policies reflect changes that happened during the past year.
Review any new vehicles added to policies. Are there new drivers? Has your home received renovations or updates? Did you purchase expensive jewelry or art? Are there changes to how you use your assets that should be noted?
Businesses should look for new locations, additions to the staff, new services offered, equipment, or revenue. Leaving changes off policies could result in denied claims or inadequate limits when you need protection.
COMPARING OPTIONS BEFORE ACCEPTING YOUR RENEWAL
Once you have updated limits, confirmed coverages, and verified endorsements, take a moment to comparison shop. Signing up for renewal without quotes from competitors gives your carrier little reason to offer the best prices or coverage terms.
Comparison shopping can at least ensure your current renewal is still competitive. You aren’t required to switch providers every year, but you should be armed with information before making renewal decisions.
When comparison shopping, look beyond the premium to coverage details. Compare limits, pay close attention to exclusions, and check the financial strength and claims service reputation of competitors.
CONCLUSION
Policy renewal reviews should answer the following questions. Do my limits still match my exposure? Are my deductibles still affordable? Do endorsements add protection or limit coverage? Does my premium reflect my actual risk?
Policy renewals should also account for new assets, operations, or changes to your lifestyle. By taking the time to review renewal information, you can ensure your insurance protects you as you need and keep premiums aligned with your risk.
Frequently Asked Questions
What documents should I review when my policy renews?
Not only should you review the declarations page and endorsements, but also take time to carefully review your exclusions and any renewal package summary sent by your carrier.
How often should I update coverage limits?
Minimum recommendations for increasing limits should be an annual review. Purchasing new assets, increases to property values, or taking on additional liability exposure are other times you should consider increasing limits.
Can I make changes to my coverage at renewal without penalty?
Yes! Renewal is the ideal time to make changes to limits, add or delete coverage, and adjust deductibles. You typically will not be charged a midterm change fee to adjust coverage at renewal.
Why did my premium increase if I haven’t had a claim?
Premiums can increase based on overall industry rate changes. Coverage might also increase due to rising costs to repair your home or inflation. Some carriers also use updated risk models to more accurately price policies.
Who should I work with to review my policy renewal?
Bowthorpe & Associates Insurance Producers can review your policy renewals and help identify gaps in coverage. If changes are needed, we can find suitable recommendations and help you weigh your options.