top of page

Insuring Your Investments: Why Informing Your Insurance Provider About New Purchases Matters

Disclaimer: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.


Vehicle driving on snow covered roads in winter

Managing your insurance policies and informing your insurance provider about new purchases is very important in order to adjust your coverage. Whether it's a shiny new trampoline for the backyard or an ATV for weekend adventures, keeping your insurer in the loop can make a significant difference in protecting your investments and ensuring you have the coverage you need when the unexpected happens.


Why is it important to inform your insurance provider about

new purchases?


Coverage Adequacy


Different items require different types and levels of coverage. From a pool to a boat, each introduces new risks that may not be covered by your standard homeowners or auto insurance policy. By informing your insurance provider about these purchases, you can ensure you have the appropriate coverage in place to protect your investment and mitigate potential liabilities.


Policy Exclusions


Insurance policies often come with specific exclusions for certain items or activities. For example, your homeowners insurance policy might have exclusions for high-risk items like trampolines or recreational vehicles. By informing your insurer about these purchases, you can work together to address any exclusions and explore options for obtaining the necessary coverage.


Risk assessment 


Insurance providers assess risk based on the information provided by policyholders. When you fail to inform your insurer about new purchases, you run the risk of being underinsured or facing coverage gaps in the event of a claim. By proactively communicating with your insurer, you can ensure they have an accurate understanding of your assets and adjust your coverage accordingly.


Claims Processing


In the unfortunate event you need to file a claim related to a newly purchased item, having informed your insurer beforehand can streamline the claims process. It helps establish transparency and trust between you and your insurer, potentially expediting the resolution of your claim and minimizing disruptions to your life.


How to Inform Your Insurance Provider About New Purchases


1. Review Your Policies

Take the time to review your existing insurance policies to understand their coverage limits, exclusions, and any requirements for reporting new purchases.


2. Contact Your Insurer

Reach out to your insurance provider to inform them about your new purchase. Provide details about the item, such as its make, model, purchase price, and intended use. Be prepared to answer any questions your insurer may have about the purchase.


3. Update Your Policy

Work with your insurer to update your policy to reflect the new purchase. This may involve adjusting coverage limits, adding endorsements, or purchasing additional policies to adequately protect your investment.


4. Keep Records

Maintain detailed records of your communication with your insurer, including any changes made to your policy. These records can be invaluable in the event of a claim or dispute with your insurer.


Informing your insurance provider about new purchases is a crucial step in protecting your investments and ensuring you have the coverage you need when you need it most. By proactively communicating with your insurer and updating your policies as needed, you can enjoy peace of mind knowing your assets are adequately protected against unexpected events. So, the next time you make a significant purchase, don't forget to give your insurance provider a heads up, it could save you a lot of hassle down the road!



Need help? Contact the team at Northern Insuring Agency. Our professionals can help you figure out which personal insurance policy will be the best option to help you keep up with the ever-changing world we live in.


Get in touch today for a quote! Northern Insuring will simplify the complicated...for insurance.


10 views

Comments


bottom of page