How frequently should an insured review their coverage?

An insured should review their coverage at least annually or when significant life changes occur because insurance needs can evolve due to various factors. Regular annual reviews ensure that the policyholder's coverage remains adequate to meet current conditions and risks. For example, life events such as marriage, the birth of a child, home purchases, or changes in employment can all necessitate adjustments to existing insurance policies.

In addition, annual reviews can help identify any gaps in coverage or changes in the insured property's value, allowing policyholders to make informed decisions about their insurance needs. This proactive approach minimizes the potential for being underinsured or overpaying for unnecessary coverage, ultimately contributing to better financial security.

While reviewing coverage only during policy renewal periods may seem practical, it does not account for important life changes that may occur throughout the year. Similarly, stretching reviews to a five-year span can leave an individual exposed to unexpected risks or inadequate coverage for too long. Therefore, conducting thorough reviews at least annually—or following significant changes—is a best practice in maintaining comprehensive and effective insurance coverage.