November often marks the beginning of a busy season. Holiday road trips, overnight guests, family gatherings, online shopping, and colder weather can all become part of the month ahead. As you're making holiday plans, it's also worth taking a few minutes to review your insurance. You don't need to become an insurance expert. You simply want to understand what your current policies cover and whether anything has changed since the last time you looked.
Here's a practical holiday insurance checklist to help you prepare.
Why Review Your Insurance Before the Holidays?
The holidays can introduce changes in how you use your home, vehicle, and belongings. Reviewing your coverage before the season gets busy can help you understand your financial responsibility if something unexpected happens. An insurance review may be especially useful if you've recently:
Think of it as part of your year-end financial checkup.
1. Taking a Holiday Road Trip? Review Your Auto Insurance
Before heading out for Thanksgiving or another holiday trip, check your auto insurance coverage. Review your:
It's also smart to know where your insurance information is stored and how to contact your insurer if you need assistance away from home.
What if you're financing your vehicle?
If you have an auto loan, look at both your insurance coverage and your outstanding loan balance.
If you owe more than your vehicle is worth, Guaranteed Asset Protection, commonly called GAP, may provide additional financial protection in certain covered total-loss situations, depending on the terms of the product. That's especially worth understanding before you need it, rather than after an accident.
2. Hosting for the Holidays? Check Your Homeowners Coverage
Holiday entertaining brings more people into your home, and sometimes more potential for the unexpected. Review the liability coverage included with your homeowners insurance and make sure you understand your limits, deductibles, and exclusions.
While you're at it, consider whether your home has changed during the past year. A major renovation, addition, or expensive new purchase may be a reason to contact your insurer and discuss whether your existing coverage is still appropriate.
3. Renting? Don't Overlook Renters Insurance
Renters insurance can sometimes get overlooked because renters don't own the building where they live. Your landlord's policy, however, generally isn't designed to insure your personal belongings.
Depending on the policy, renters insurance may help protect your possessions and provide liability coverage. If you've purchased new furniture, electronics, or other valuable belongings during the year, take a moment to review your coverage limits.
4. Update Your Home Inventory Before Holiday Shopping
November also kicks off one of the busiest shopping periods of the year. If you're buying electronics, jewelry, furniture, or other expensive items, update your home inventory. A simple inventory could include:
For particularly valuable purchases, ask your insurance provider whether your regular homeowners or renters policy provides enough protection or whether special coverage should be considered.
5. Understand Your Deductibles
Knowing you're insured isn't the same as knowing what you'll need to pay if you make a claim. For example, if your homeowners policy has a $2,000 deductible, ask yourself:
Could I comfortably cover $2,000 from savings if something happened tomorrow?
If not, building that amount into your emergency savings goal may be worth considering.
Your insurance and emergency fund work together. Insurance can provide protection against covered losses, while your savings can help you manage deductibles and other unexpected expenses.
6. Prepare Your Home for Colder Weather
Before winter arrives, take a walk around your home and look for potential issues. Depending on where you live, seasonal maintenance might include:
Preventive maintenance doesn't replace insurance, but it can help reduce the chance that a small problem becomes a much larger expense.
7. Don't Assume Your Policy Covers Everything
Insurance policies have limits and exclusions, and coverage can vary considerably between providers and policies. That's why one of the best questions you can ask during an insurance review is simply:
"What isn't covered?"
Consider asking about situations relevant to your household, including severe weather, flooding, valuables, rental vehicles, or other circumstances you may encounter. Understanding your coverage before something happens can help prevent surprises later.
Your November Insurance Checklist
Before the holidays get into full swing, take a few minutes to ask:
You might find that your coverage is already right where it needs to be. And that's valuable information, too.
Protect Your Finances This Holiday Season
Insurance may not be the first thing you think about when November rolls around, but it plays an important role in your overall financial well-being.
Taking a few minutes to review your coverage can help you understand how you're protected and where you may have financial exposure. Pair that protection with a healthy emergency fund, responsible holiday spending, and good financial habits, and you'll be better prepared for both the celebrations and the unexpected.
Insurance products, availability, coverage, limits, exclusions, and eligibility vary. Review your policy documents and consult a qualified insurance professional regarding your individual coverage needs.
Frequently Asked Questions
Should I review my insurance before the holidays?
Yes. The holiday season can be a useful time to review your auto, homeowners or renters coverage, especially if you've recently experienced a major life change, purchased valuable belongings, or changed vehicles.
What insurance should I check before a holiday road trip?
Review your auto liability, collision and comprehensive coverage, deductibles, roadside assistance, rental-car benefits, and the drivers listed on your policy.
Does homeowners insurance cover holiday gifts?
Homeowners and renters policies may provide coverage for personal belongings, but limits and exclusions vary. Expensive items may have different coverage requirements, so check your individual policy or speak with your insurer.
Why should I create a home inventory?
A home inventory helps you keep a record of your belongings, including descriptions, photos, receipts, and estimated values. Keeping it current can give you useful documentation if you ever experience a covered loss.
How does insurance fit into an emergency fund?
Insurance and emergency savings can work together. Your insurance may cover eligible losses, while your emergency fund can help you handle deductibles and expenses that aren't covered.