Over time, things change. You might make upgrades to your home, buy a new recreational vehicle or take on new business clients and employees. When changes happen, your insurance coverage needs to keep pace.
Too often, insurance is purchased just to “check a box” — it’s a necessary requirement for a mortgage or business contract, rather than obtained as true protection. This can leave people underinsured and unprepared when something goes wrong, especially when policies haven’t been updated. An annual review ensures you aren’t exposed to risks you didn’t even realize were there.
When Businesses Grow, So Does Insurance Coverage
Every year, we help companies catch missing or outdated coverage that could be potentially costly oversights if a claim comes through. Let’s say you run a lawn care business. We’ll make sure you have things like pollution coverage that the industry often requires. If you’re a home builder, we’ll check on appropriate project coverage and subcontractor agreements for needed provisions.
If your business has employees, Employment Practices Liability Insurance (EPLI), which covers you if a disgruntled employee sues over hiring, firing or a wage dispute, is often overlooked. One claim in that area can cost a company a lot of money if it’s not properly insured. If you started as a one-person business and have since grown to include employees, a policy review could identify this as an area that also needs updating in your policy.
The right mix of coverage doesn’t come prepacked; it takes a sharp eye, experience and understanding of your business’s current operations to ensure all areas are protected.
Before we review a policy, we send out updated schedules to our clients. We look at all insured properties, vehicles, payroll and revenue to make sure everything is accurate. We know that businesses grow and evolve — they may make vehicle purchases, move to new locations and hire additional employees. Although we always advise our clients to inform us of any changes, we know that even the best of intentions don’t always pan out.
I’ve seen situations where a vehicle was purchased and assumed to be covered in a business policy but was never officially added. That’s a big “whoopsie”! While vehicles are usually covered for a limited window after purchase, if they’re not properly added, that coverage lapses — and you don’t want to find that out too late.
Don’t Forget Check-ins on Personal Policies
Policy reviews aren’t just for businesses — homeowners and individuals benefit from thorough annual reviews as well. One common issue we see on personal policies is on home replacement costs. While the typical annual increase applied to replacement cost coverage used to be adequate five or ten years ago, today’s labor and materials have increased substantially. Be sure to have your Homeowners policy reviewed if for no other reason than that. If your home is underinsured and something catastrophic occurs, you won’t have enough coverage to rebuild without potentially significant out-of-pocket expenses.
Same goes for auto insurance. If you stick with the state minimum liability limit (in Iowa, $20,000 per person, $40,000 per accident), it may not cut it if you’re in a serious crash, especially if it involves a commercial truck or multiple vehicles. We also take into account new drivers and college-bound kids in the family. When liability coverage is too low, damages above the limit are out-of-pocket. That could mean long-term financial consequences, possibly even garnished wages. Personally, I don’t feel comfortable letting a client stay in policies with limits that low, and as an agency, we would rather turn business away than leave our clients vulnerable to real risks.
Don’t Overlook Important Details: Deductibles, Personal Property, and More
Another area people often overlook is residential and commercial deductibles. It’s important to know what your deductible is and make sure you have enough savings to cover it, if needed. Too many people focus on premiums when they really need to be sure they’re prepared if something happens. If a policy hasn’t been reviewed in years, the deductible might not reflect today’s inflation-driven reality.
Also, personal property coverage usually sits at around 75% of the dwelling limit. If your home’s replacement cost increases, your personal property coverage should increase with it. If you also own valuable items, like expensive jewelry, artwork or collectibles, the items should be specifically scheduled on the policy. The additional premium for that is typically minimal, especially compared to the protection it provides.
Review for Better Rates, Better Protection
One thing I love about my job is being able to say to someone, “Let me run rates for you — no cost!” It doesn’t cost you anything to have your current policy reviewed. If I can help you find a better rate with another carrier, even better. Think of it like getting a second opinion. Insurance companies all weigh risk differently, and your insurance score — much like your credit score — can impact your premium. It’s worth having someone double check.
As an independent agency, the Vibrant team can shop policies across several companies to make sure new and loyal clients are getting both the coverage and the price they deserve. Simply send us a PDF of your current policy, and we’ll make sure you’ve got the best coverage possible.
Insure to Protect
Buying insurance doesn’t just “check a box”. When you really need the protection, you’ll be thankful that what matters the most to you isn’t left exposed. A fire, lawsuit or vehicle accident can be financially devastating if your coverage doesn’t measure up.
We’re here to help. We love to help educate our clients on what they do and don’t have, explain what’s covered and what’s not, and ensure they are set up to withstand unexpected challenges. Remember: a simple (and cost-free) review could make all the difference.
