Your End of Year Insurance Coverage Review Checklist

With just a few weeks left in the year, December is the time to tie up any loose ends in your finances. Along with the standard money moves smart people are making before January, you should take a moment to pull out all of your insurance policies and make sure everything is up to date.

This can not only close any coverage gaps you might not know about, but also help you save by trimming away coverage you no longer need.

After you've finalized your year-end tax strategy and reviewed your investment portfolio, grab a cup of hot cocoa and cozy up with your insurance documents. Here's a checklist of what to look for and what kind of changes you might need to make.

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Home insurance review checklist

Whether you're a new homeowner or you've lived in your house for decades, your home insurance needs can change from year to year. Something as seemingly unrelated as that new TV you bought over Black Friday could be enough to warrant a call to your insurer.

Here's what to review, plus the life events and changes from this year that might affect your home insurance coverage:

• Review your deductibles. Are they set at an amount you can comfortably cover in an emergency? If so, could you actually afford to raise them a bit? Higher deductibles can lower your premiums, but you only want to raise them to a level that you're able to pay out of pocket if you have to.
• Review local environmental risks and your home's readiness for them. That includes snow, floods, fires, earthquakes and severe storms. Consider getting an inspection and making a list of repairs or home hardening projects to tackle next year to make your home more resilient to these hazards.
• Make (or update) a home inventory. Walk through your home and take a video with your phone. Add the recording date to your inventory list so you can quickly locate it if you ever need to file a claim. You don't have to itemize every dish or towel. The key is to list out the biggest things that would be costly to replace, like appliances, electronics and furniture. Then, provide an estimate of other odds and ends like clothing, accessories and so on. Include pricing info.
• Did you make any major improvements or renovations this year? "Some upgrades may warrant coverage changes to ensure your policy covers them. These include finishing a portion of your basement, updating your kitchen or bathroom, or adding a room," explained Zach Patten, owner of Oak Grove Insurance in Canton, MA. "Other updates, such as replacing your roof or updating your electrical panel, may unlock additional discounts on your home insurance policy."
• Did you make any big ticket purchases, like upgraded appliances or a top-of-the-line TV? Other big purchases, like that fine jewelry you bought for an anniversary or special occasion, also warrant a policy review. "This may impact your contents coverage or require a separate rider," said Alex Burgess, Principal Industry Strategist at Hi Marley.
• Have you begun working from home? Depending on the type of business, you may need different coverage to protect your home office.
• Did you recently remove something that is currently covered by your home insurance? Getting rid of a pool or shed — or even ditching your trampoline —could be enough to warrant a call to your insurer so you're not paying for coverage on things you no longer own.

Car insurance review checklist

From cars that have become too old to bother paying for full coverage to parents adding their teen driver to the policy, your car insurance needs can fluctuate dramatically from one year to the next.

Here's a quick checklist of what to look for as you review your policy ahead of 2026:

• Verify the drivers listed. Do you have kids turning 18 and getting their own policy? Make sure they're no longer listed on your policy. Divorced? Make sure to take your ex off of your policy.
• Review the coverage types you currently pay for. Are you paying for rental car coverage despite living in a multi-car household? You can probably drop that. Are you paying for roadside assistance even though you're already a AAA member? Drop that.
• Review coverage levels. Is your liability coverage high enough to protect your net worth? Are you paying for more collision or comprehensive coverage than you need, given your car's current market value?
• Have a teen that's about to start driving? Check the cost of adding them to your policy now so you can plan for any increase. This is also a good time to reassess and potentially raise your liability coverage.
• Check your car's current market value. Sometimes, it makes sense to drop full coverage on older cars or any cars that aren't worth much. You can cut costs dramatically without seriously sacrificing coverage because you wouldn't have gotten much from your insurer in an accident anyway.

Life insurance review checklist

If you don't have life insurance right now, this is a good time to revisit that decision, especially if you recently got married or are planning to start a family. Instead of reviewing an existing policy, use this time to look at the different types of life insurance and decide whether any of them fit your needs.

If you already have life insurance, it isn't a policy you should set and forget. Review the basics, including your beneficiaries and the benefits included. Do you have enough coverage? Too much? Do you still need it at all? Here's how to answer those questions.

• Review your beneficiaries. If you welcomed a new child into your family this year, make sure they're added to the policy. Got divorced? You might want to remove your ex.
• Review your coverage amounts. Were there any significant changes to your income or assets this year? A big promotion could warrant raising your benefit amount. Buying a home could warrant adding mortgage payoff benefits to your policy.
• Do you still need life insurance? As your assets grow, your family's need for coverage may decline. If you've saved up enough that your family would be financially secure in the event of a death, you can consider dropping life insurance or at least lowering the benefit amount to cut down on premiums. A rule of thumb is to set your life insurance benefit at 10 times your salary — giving your family at least 10 years' worth of your income to help them maintain financial stability. If you've amassed a 401(k) or other savings that are worth at least that much, you may be able to drop life insurance, knowing that your family can tap your savings if need be.

An annual insurance review saves money and lowers risk

While digging through insurance paperwork may not sound fun, it's worth it. Using the checklists above, it won't take long to review the key points and figure out what changes you might need to make.

That hour or two you spend now could save you hundreds in premiums and thousands if you uncover any coverage gaps that could leave you on the hook for damages in an emergency.

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