Insurance is designed to protect you from unpreventable catastrophic losses, no matter if you are covering your automobile, your property, or your recreational vehicles. While premiums are very important, all policyholders should take time to review their insurance policies to ensure that they have adequate coverage before they ever need to file a claim. There is nothing worse than knowing that your limits, your coverage options, or the endorsements on your policy are not sufficient until it is too late. Here are the top reasons why you should take time to review your insurance coverage each time you renew or whenever you are applying for a new policy.
Top Reasons Why to Ensure Your Coverage is Accurate
Make Dealing With a Loss Less Stressful
Aside from buying insurance to satisfy legal requirements, you ultimately buy insurance to ensure that your insurance company will help you deal with your loss. Because insurance is an intangible product that you only really truly use when you are in a bad situation, you need peace of mind in knowing that the product will actually pay you. Finding out that you do not have the right coverage or adequate limits when you are forced to file a claim will add stress to an already stressful situation. While your insurer should be making efforts to review your policies with you, it is your responsibility as a policyholder to check your coverage and review all of your options.
Pay Less Out-of-Pocket
There is nothing worse than finding out your property insurance limits are too low to rebuild your home after the home is totaled by a fire. If you do not review your coverage limits and you are forced to file a claim, you may be left paying for a large portion of the loss out-of-pocket. If you take time to build a policy that provides adequate levels of protection, you will have peace of mind in knowing that you will never be left clearing out your bank account just to rebuild and recover from a loss if it occurs. When you verify your insurance coverage is adequate, you can save yourself a pretty penny years down the line.
Protect Yourself from Liability Exposures
Canada has become a very litigious place. There are a number of people looking for the opportunity to sue businesses, homeowners, and anyone else. This is why liability insurance is so extremely important. While most policies come with liability coverage, you have the option to select different limits. By selecting the adequate limits, you have peace of mind in knowing you will not get stuck in court where you could be ordered to pay damages.
You should always review your insurance policies, especially when you experience a life changing event. You can use the Internet to assess which coverage limits are best for you, or call your agent and discuss your situation for recommendations. Take a small amount of time to prevent a huge nightmare in the future and review your insurance.