Annual Insurance Review


Now that the new year has arrived, this is the perfect time to conduct an annual review of your insurance policies as well as get up to date on impending changes to the insurance industry. As your trusted insurance agent, we at Galvin Agency want to make sure that you have exactly the coverage you need and that you’re aware and up to date on industry changes that may affect your coverage and premiums.


Annual Insurance Review

Setting up an annual appointment with your agent/broker to review your insurance policies is an excellent way to invest in your preparedness for the future. What you learn in the process could improve your ability to mitigate and overcome a disaster, should one ever occur to your family, property, or business.


Here are just a few potential benefits of performing an annual insurance review with your agent:


Identifying gaps in coverage

Gaps in coverage exist when you do not have the right type of coverage or when you do not have enough insurance based on the value of your property and its contents to fully rebuild post-disaster. There are several circumstances that may cause gaps to exist, including fluctuating costs of goods and raw materials or new valuables or upgrades that haven’t been accounted for. The chances of not being adequately reimbursed due to a gap in coverage is an unnecessary risk than can be mitigated with an annual review.

Finding discounts

An annual review is also the ideal time to ask your agent if you might be eligible for any discounts. Your insurance policy and premium can adapt as your status and situation changes. Depending on your policy and carrier, things such as improving your credit score, loyalty, and paying your annual premium versus monthly installments could potentially lower your premium as well. Keeping us up to date can help us find you the best possible policy and the best price.

Remaining compliant

Another important reason to keep your insurance policies current is to remain in compliance with any underwriting in your policy. Failure to update your coverage to reflect important changes such as operating a business, renting your home, etc, can result in denial of coverage or a settlement due to the omission of important information. We want to make sure that doesn’t happen to you!

Obtaining peace of mind

Perhaps the most valuable benefit of an annual insurance review is the reassurance that you will be able to recover financially should a disaster occur. Identifying any insurance gaps, noting changes, and discussing any potential “what-if” scenarios with your agent will put you on track to being prepared for the worst. Peace of
mind is priceless!


Important Industry Challenges and Changes

In recent years, the personal lines property and casualty insurance market has been impacted and is still undergoing significant changes. The past six months have been particularly impactful due to the increasing frequency of major loss events and inflation affecting rebuild costs – it has left our industry facing unprecedented challenges. Below we’ll help shed light on the evolving insurance landscape and provide insight into what you can expect in the near future.


Rising Frequency of Major Loss Events 

The insurance industry has always dealt with natural disasters, but recent years have seen a surge in the frequency and severity of these events. Wildfires, hailstorms, windstorms, and flooding are occurring more often than ever before. Climate change, urban development in high-risk areas, and various other factors have contributed to this concerning trend. As a result, insurance carriers have experienced losses that surpass any previous projections.

Inflation’s Impact on Rebuild Costs 

Inflation isn’t limited to everyday expenses; it’s also affecting the cost of rebuilding homes and repairing damages. The rising prices of construction materials, labor, and other factors have led to increased costs for insurers when it comes to settling claims. These inflated rebuild costs are a significant concern for both insurance companies and policyholders. The impact of inflation can be felt even more so on the auto side, where cost of vehicles, their repairs, and the frequency of liability (lawsuit) loss have increased tremendously.



What Does This Mean For You?

As the personal lines P&C insurance market faces unprecedented challenges, it’s essential to understand how these changes will impact both the insurance market as a whole and you, our valued clients. Some of the effects we can anticipate:

Rate Increases

The increase in major loss events and rising rebuild costs will inevitably result in rate adjustments. Clients can expect higher premiums, especially for properties located in high-risk areas. It’s crucial to prepare for potential increases in your insurance costs and budget accordingly.

Less Carrier Availability in the Market

With insurance carriers grappling with losses that exceed projections, some may decide to reduce their presence in certain markets or limit the types of policies they offer. This could lead to reduced options for clients when it comes to selecting an insurance provider.

Deductible and Policy Changes

Insurance companies may revisit deductibles and policy terms to better align with the increased risks.  Policyholders should be prepared for potential adjustments to deductibles and policy conditions. It’s essential to review any policy changes, renewals or new quotes obtained carefully to understand how they may affect your coverage.

Enhanced Risk Assessment 

Carriers have implemented stricter risk assessment criteria, particularly for properties in high-risk areas. As well as exploring other risk mitigation options, this could result in more detailed inspections and assessments before issuing policies. It’s crucial for clients to provide accurate information and maintain their properties to help mitigate risks.

Greater Emphasis on Risk Mitigation

In response to these challenges, carriers may encourage or even mandate risk mitigation measures for policyholders. This could include requirements for home improvements and safety upgrades. Clients may have the opportunity to lower premiums by proactively addressing risks.

Policyholder Education 

As the insurance landscape evolves, we are committed to providing ongoing education and guidance to our clients. It’s essential to stay informed about policy changes, coverage options, and risk mitigation strategies.  Our agency will continue to serve as your trusted resource for insurance-related information.


While the current insurance market presents challenges, we want to assure you that we are here to support and guide you through these changes. Our commitment to our valued clients remains unwavering, and we will work tirelessly to help you navigate the evolving landscape, find the right coverage, and ensure your peace of mind.

If you have any questions or concerns regarding these changes or your insurance policies, please do not hesitate to reach out to us. Your satisfaction and protection are our top priorities, and we are dedicated to assisting you in any way we can.

Thank you for entrusting Galvin Agency with your insurance needs.


APCIA Says Property Insurance Market ‘Hardest in a Generation’ March 28, 2023


Nationwide to go through re-underwriting initiatives to further improve its book June 13, 2023


State Farm hit with record $13.2 billion underwriting loss in 2022 February 27,2023


Kemper Exits Preferred Home and Auto Business Immediately August 8, 2023


State Farm, Allstate, Other Home Writers Facing Same Consumer Price Index Pressures July 14, 2023

P&C Specialist’s Post; Subscription required; full article can be sent upon request


Big Personal Lines Carriers Restructure Biz Ops: A Timeline September 6, 2023

P&C Specialist’s Post; Subscription required; full article can be sent upon request


Home Insurance ‘Bubble’ Closer to Popping as Climate Risks Mount September 20, 2023

Bloomberg News; Subscription required; full article can be sent upon request


Farmers Plans to Drop 67K Home Policies in Texas October 16,2023

P&C Specialist’s Post; Subscription required; full article can be sent upon request



Did you Know?

We offer a wide variety of insurance products to include Home, Auto, Life, Annuities, Motorcycle, RV, ATV, Boat, Small Business, Rental, Umbrella, and Equine Mortality/Major Medical coverage.
Galvin Agency is here to help you with insurance questions, needs, and claims. We are here to assist you and our job is to make sure you feel protected and knowledgeable. Thank you for your business and we look forward to talking with you soon!

No person associated with this news letter receives any form of compensation for any products mentioned, nor should any mention of a particular product be considered an endorsement of that product. This newsletter is for informational purposes only and should not be considered authoritative on any topic. Please seek advice from an appropriate professional on any specific issue.

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