I wanted to share a story about an experience I just had with my personal insurance policies (auto, home and umbrella).
For 10 years I have been working with the same insurance broker to help me with my insurance needs. I was concerned that for 10 years not once did he ever recommend any changes to my policies. I would even call him and ask him to review them and he got back saying no changes were necessary.
At a social event I was speaking to a few of my friends and auto insurance came up. We were comparing what we were paying and what I was paying was much higher than everybody in the conversation. Now I know that the policy limits can be different so I wasn't so concerned yet. The following week I called another insurance company to get a quote and was amazed how much I could save by going to them (with the same limits). The savings was approximately $2,700 per year just for auto. So you can imagine I was upset and started to quote my other two policies.
I discovered that my insurance broker never put on my personal item endorsements when I reviewed my homeowners policy. I requested this to be done 2 years ago and have saved emails from him confirming that it was done. By the way insurance companies usually require appraisals to be prepared 2 years or less to be used for values on the endorsements. So now I have to get some items reappraised, which cost money.
I called my broker the following week after I did all my research and spoke to other insurance professionals I know. I told him I wasn't happy and explained to him all my issues. His response was let me work on it and get right back to you. Within 45 minutes I got a call back that he can reduce my auto insurance by more than $,3,264 and keep the same limits. The savings alone is more than the new auto insurance policy costs. He then told me that he has all the appraisals and will get them added to the homeowners. Of course there were two which are older than 2 years old which needed to be updated.
Lesson learned and everything is fixed now. As a financial advisor I know the importance on reviewing your current insurance policies to make sure they are still suitable for your current needs. Going forward this will be done annually with my new broker.
Hope this helps and after reading this maybe you can save a few dollars by doing the same review I went through.