How Much Insurance Coverage Do I Really Need? (And Why January Is The Best Time To Review)

The start of a new year is a natural reset—and it’s one of the best times to take a fresh look at your insurance coverage. After the holidays, many people have added new belongings, made financial changes, or started planning for the year ahead. Yet insurance is often the last thing to be reviewed.

So how much insurance coverage do you really need? The answer depends on your lifestyle, assets, and risks—not just minimum requirements or what made sense years ago. For homeowners, this means having enough dwelling coverage to rebuild your home at today’s construction costs. For auto insurance, it means carrying liability limits that protect your finances if you’re at fault in an accident.

January is an ideal time to review deductibles, liability limits, and replacement cost options. A higher deductible can lower your premium, but it should still be affordable in an emergency. Replacement cost coverage—rather than actual cash value—can make a major difference if you ever need to replace belongings or repair damage.

Waiting until after a loss happens can be stressful and expensive. A proactive review early in the year helps uncover coverage gaps, missed discounts, and outdated limits—before you need to rely on your policy.

Starting the year with the right coverage provides confidence, clarity, and peace of mind all year long. Schedule a free insurance review and start the year confident and covered.