How frequently should homeowners review their insurance coverage?

Homeowners should review their insurance coverage annually or after significant life changes to ensure that their policy adequately meets their current needs. This review is essential because various factors can affect the amount of coverage required, such as changes in property value, renovations, or major life events like marriage, the birth of a child, or the acquisition of significant assets. For instance, if a homeowner has made significant renovations or bought new valuable items, their existing policy may no longer cover the full replacement cost or the new value of the home and possessions.

Regular reviews can also help identify any gaps in coverage or determine if the policy still offers the best value compared to other available options. As the insurance landscape can change with new products or terms, an annual review helps homeowners remain informed and proactive in managing their risks effectively. This approach ensures that individuals are adequately protected against potential losses and can help them avoid unexpected expenses resulting from underinsurance.