Build one insurance inventory
Start by simply listing what policies your parents have. The usual suspects are homeowners or renters, auto, umbrella liability, and life insurance, but also look for flood, earthquake, and separate policies covering valuables like jewelry or art.
For each policy, write down:
- Who owns the policy
- Who is insured
- Insurance company
- Renewal date
- Premium
- Deductible
- Coverage limits
- Major exclusions
- Beneficiaries, where applicable
- Where the full policy is kept
Then check if they are missing any of the main forms of insurance. Many younger homeowners pay their homeowners' insurance as part of their mortgage payment. Sometimes, once the mortgage is paid off, they forget they still need homeowners insurance. Many people have never had an umbrella policy, but their net worth may now be high enough to justify the coverage. Discuss these policy types with your parents if you are comfortable doing so or bring it up when you join your parents to meet with an insurance broker.
Match the coverage to their life today
This is the heart of the review. Go policy by policy and ask whether it still fits:
- Homeowners or renters. The most common mistake is insuring the house for what it would sell for instead of what it would cost to rebuild — those are very different numbers. Also check the coverage for their belongings, for somewhere to live if the home is damaged, for personal liability, and for water backup. Flood and earthquake almost always need their own separate policies.
- Auto. Confirm who is listed as a driver, the mileage, the liability limits, and the uninsured-motorist coverage. If your parents are driving a lot less, or have stopped, ask the insurer what that changes — it can lower the premium, and it matters if someone else is now using their car.
- Umbrella liability. An umbrella policy adds a layer of liability protection on top of their home and auto coverage, which is cheap peace of mind if your parents have savings worth protecting. It sits on top of those policies; it does not replace them or cover damage to their own home or car.
- Life insurance. Ask what the policy is actually for now. A policy bought thirty years ago to replace a paycheck may no longer be needed, or it may have taken on a new job — covering final expenses, leaving something to heirs, or paying estate costs. Check the death benefit, the premium, any cash value or loans, and — this one gets missed constantly — that the beneficiaries are still the people your parents would choose.
- Special situations. Jewelry, art, a home business, a rental unit, a second home, or volunteer driving can all need their own coverage that a standard policy won't handle.
Don't cancel needed insurance until a new policy is in force
One rule is worth repeating: never cancel an existing policy until the new coverage is approved and in force. This goes double for life insurance, where replacing a policy can restart contestability and surrender periods and require fresh medical underwriting — sometimes at a much higher price. Ask for a written, side-by-side comparison of the old policy and the proposed one before anyone signs.
Talk to a broker
There are different types of insurance agents. I recommend working with an independent insurance broker because they can shop around for the best deal for each of your policies. Always remember insurance agents and brokers are salespeople, and there is nothing wrong with that — but they are paid through commissions, fees, or bonuses, and that shapes what they recommend. It is completely fair to ask how a particular person is paid, which companies they represent, and whether they looked at cheaper or simpler options. When a policy is tangled up with estate planning, taxes, investments, or paying for long-term care, I would get independent advice from a fiduciary financial planner or an estate-planning attorney who isn't earning a commission on the sale. You can also confirm that any agent or insurer is licensed, and check for complaints, through your state insurance department.
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