About this Event
Insurance Checklist for the New Year
The Indiana Department of Insurance recommends you review these five policies at the beginning of the new year.
Indianapolis — Make a resolution to review your policies and coverage. The start of a new year is a great time to reevaluate your insurance coverage needs. Changing circumstances may require updated policies. Did you have a baby? Get married? Purchase a new home or car? If so, you'll want to check to make sure you have the right protection.
Talk with your agent and review your policies to see if they meet your current needs. Your agent or insurance company can help determine whether your coverage is adequate or if you might need to make adjustments. Even if you haven't experienced a life changing event, you could be eligible for discounts or new insurance products that may better serve your needs.
Life Insurance or Annuities
Changes–birth, divorce, remarriage or even a new mortgage or new job–are indicators that you might need to make changes to your life insurance policy, or at the very least review your policy.
Read your policy carefully and answer these questions:
In the case of the birth of a child or a new marriage, you may want to consider increasing your death benefit. Check with your agent to see if your insurance company requires a physical exam before increasing your coverage levels.
Alternatively, events like paying off your mortgage, retirement or children finishing college might mean that you can lower your life insurance coverage and premiums. Ask your life insurance company whether you have the option of "conversion privileges" from your current term life insurance policy to a new whole life insurance policy. You may be able to use the cash value of the policy or accelerate the death benefit up to 50-75 percent of the face amount of the policy in the event you become terminally ill. Ask your insurance agent or company about these options.
Each year your insurance company should send you a summary of coverage. Be sure to review the summary for key future dates regarding termination, annuitization or the benefits provided.
If you have been impacted by a catastrophe or live in an area prone to floods, you should make sure you're properly covered. These disasters can be costly and may not be covered under a standard policy. In most cases flood policy coverage has a 30-day waiting period after it is initially purchased, thus making advanced planning important. Discuss the possibility of adding coverage for these perils with your agent or insurance company.
Many people have made upgrades to their homes while quarantining due to the COVID-19 pandemic. It is recommended that any major home improvements be reported to your agent, as those improvements may have an impact your property value and the amount of insurance necessary to adequately cover your home. If improvements were made to a basement area, check your policy to determine if drain and sewer back-up coverage is included and review your policy limits for that type of coverage.
If you are a dog owner, be aware that not all homeowner policies provide liability protection for injury caused by dogs or certain breeds of dogs. Check your policy to determine if liability for dog bites is excluded. If your policy has a dog liability exclusion, you may wish to contact your agent to determine if a buy-back for dog liability coverage is available for purchase.
The start of a new year is also a great time to update your home inventory and make sure your homeowners or rental policy is up to date. Take photos or video of your prized possessions. Remember to note valuable antiques, artwork or jewelry so your insurance agent or insurance company can help determine if they are properly covered. Creating a home inventory from the NAIC's free smartphone app, myHOME Scr.APP.book, takes some of the headache out of this process. Download the app from iTunes or Google Play. You can also download a paper version.
Remember to add any new expensive or sizable gifts to your home inventory, too. Include as many details as you can and take photos of each item. Many home insurance policies have standard limits for big-ticket items like electronics, art, jewelry, firearms or sporting equipment. You may need additional coverage, so call your agent to discuss changes for your policy.
Have you had any changes to your driving habits? Has the number of vehicles driven by household members or the number of drivers residing in your household changed? If so, tell your agent to ensure your auto policy will cover you in case of an accident. Also take some time to check your auto insurance policy by following the guidelines below:
You may have recently enrolled or changed your health insurance whether through your employer, Medicare or your state exchange. Make sure you have new insurance cards and paperwork before you visit a doctor.
Protect Yourself from Identity Theft and Fraudulent Activity
A data breach can potentially expose a consumer's data putting them at risk for identity theft or other fraudulent activity. There are some things you can do to protect your identity in the coming year and beyond by following the tips below:
When purchasing an insurance policy:
About the Indiana Department of Insurance
The Indiana Department of Insurance (IDOI) protects Indiana's insurance consumers by monitoring and regulating the financial strengths and market conduct activities of insurance companies and agents. The IDOI monitors insurance companies and agents for compliance with state laws to protect consumers and to offer them the best array of insurance products available. The IDOI also assists Hoosiers with insurance questions and provides guidance in understanding how insurance policies work.