When to Upgrade Your Insurance Plan After Life Changes

If you recently experienced a major life event, it’s a good idea to get in touch with your insurance agent as soon as possible to update any applicable policies. In many cases, you’re legally required to update these policies within a certain time frame.

From home and auto to commercial lines, the C&S Insurance team is here to help as your life changes, providing personalized service and finding coverage that meets your new needs.

Read on to explore the different circumstances that call for insurance plan changes.

When to Update Homeowners Insurance

It’s wise to review and update your homeowners insurance every year to ensure you have sufficient coverage. You’ll receive a notice from your insurer ahead of the policy’s renewal date.

In addition to an annual review, there are several reasons why you may need to update your homeowners insurance at other times during the year. If you experience one of these major life changes, get in touch with your insurance agent to update your policy accordingly:

• Marriage: If you get married, you’ll likely want to add your spouse as a named insured on your homeowners insurance policy so they can file claims or make policy changes. Also ensure that your policy provides adequate coverage for your and your spouse’s combined personal property and assets. Some insurers offer special discounts for married couples.
• Divorce: When getting divorced, your home may change hands. Be sure to update your homeowners policy to reflect who owns the home. If your former spouse takes valuable belongings with them, you can likely lower your personal property coverage limits.
• Additions or structural changes: If you build an addition to your house or make structural changes, you need to increase the dwelling coverage on your homeowners policy to reflect the increased square footage and reassessed value.
• Big purchases: After buying expensive furniture, jewelry, or electronics, you may need to increase your personal property coverage limits.
• Pets: If you recently adopted a pet, check your homeowners insurance policy. Some insurers won’t provide liability coverage for certain dog breeds.
• Starting an at-home business: Homeowners insurance usually won’t cover liability claims against your at-home business and might limit or exclude any business equipment you have at home. If you start a home business, you’ll likely need to purchase business insurance or add an endorsement to your homeowners policy.
• Changes in income: If you retire, lose your job, or experience a drop in your income, you may want to shop around for better rates, consider changing your deductible, or ask an agent about available discounts and other ways to save.
• Paying off your mortgage: Without your lender to answer to, their specific coverage requirements no longer apply. Revisit your policy to ensure it accurately reflects your needs.
• Remodels: If you upgrade materials in your kitchen, bathroom, or another part of your home, the cost to repair or rebuild it may increase. Your policy limits should reflect this change.
• Additional structures: Adding a deck, pool, guest house, or other structure outside your home could mean you need to increase your dwelling, other structures, or liability coverage.
• System upgrades: Getting a new roof, HVAC system, plumbing, or electrical system could necessitate a review of your homeowners policy. Some upgrades, such as safety improvements, can earn you discounts, while others raise the cost to rebuild your home.

When to Update Auto Insurance

There are several life events that should prompt a review and an update of your auto insurance policy. Speak with an agent about updating your auto policy when:

• Buying a vehicle: If you buy a new car, you’ll need to add it to your policy. Having multiple vehicles on the same policy is called a multi-car policy.
• Selling a vehicle: Once you sell your car, you no longer need to pay for its insurance. Before taking it off your policy, make sure the sale is finalized.
• Changing residence: Notify your insurance agent when you move. Your premiums could increase if you move somewhere with a higher risk of accidents or theft, or decrease if you move to a safer area with less traffic. It can also change if your parking situation changes, for example, if you build a garage.
• Moving out of state: If you’re moving to a new state, familiarize yourself with its coverage requirements and update your policy accordingly. All 50 states, except New Hampshire, set minimum requirements for auto liability insurance, and some, including Massachusetts, require additional coverage, such as personal injury protection (PIP).
• Adding a driver: Sharing an auto policy with a spouse, domestic partner, or roommate can help you both save money, especially if they maintain a clean driving record. However, adding a teen driver can increase your premiums. Make sure your policy covers everyone in your household who regularly drives your car.
• Removing a driver: If someone moves out of your household and will no longer drive your vehicle (or if they switch to their own policy) remove them from your auto policy to lower costs.
• Experiencing a change in income: If you retire or start a new job, you may drive less with the changes to your daily commute. In this case, you could qualify for low-mileage discounts or policies tailored to drivers who spend less time on the road.
• Purchasing a home: If you purchase a home, consider bundling your home and auto insurance policies to earn discounts.
• Paying off your car loan: Once your car payments are behind you, it’s time to revisit your auto insurance. You might not need to carry full coverage any longer, though experts still recommend that you carry comprehensive and collision coverage.

When to Upgrade Your Policies to High-Net Worth Insurance

High-net worth insurance, also called private client insurance, is intended for families and individuals who have significant assets and unique risks. If your home, auto, and other policies aren’t providing enough coverage, consider working with an agent to upgrade to a high-net worth policy.

Major life changes, such as the following, are only some of the reasons why you might need a high-net worth policy:

• Purchasing a home worth $1 million or more (high-value home insurance)
• Purchasing an expensive art collection or other valuables (valuable property insurance)
• Purchasing a vacation home (vacation home insurance)
• Purchasing a boat or other watercraft (boat insurance)
• Hiring a domestic employee (household employee insurance)
• Becoming a public-facing individual vulnerable to lawsuits (personal umbrella insurance)

When to Update Business Insurance Policies

Just as personal milestones affect insurance needs, if you own a business, changes within it can create new risks and coverage requirements.

If your business experiences any of the following, speak with an agent to update your business insurance policies:

• Hiring new employees: As your team grows, your workers’ compensation, employment practices liability, and other business insurance needs may change.
• Expanding operations: Opening a new location, increasing service areas, or entering new markets can create new risks.
• Purchasing new equipment or vehicles: When purchasing new machinery, technology, tools, or vehicles for your company, be sure to add them to your commercial auto policy or commercial property insurance so they are fully protected.
• Increasing revenue: As your business grows, your coverage requirements change. Explore policy classifications with your insurance agent to be sure you have the coverage you need.
•  Offering new products or services: Changing your business’ operations can create additional risks and liability exposures. Check with your agent to learn how you should update your policy or add endorsements.
• Buying new property: When purchasing an office building, warehouse, or rental property for your company, update your business insurance to reflect your new assets.
• Implementing new technology, storing sensitive customer data, or increasing your online operations: Cyber insurance can help protect your business from data breaches, cyberattacks, and other digital threats that could result in costly disruptions.

Update Your Insurance or Find a New Policy

Unsure whether your current home, auto, or commercial policy meets your current needs? Contact C&S Insurance to speak with a New England insurance expert today.