# Insurance Review: [Household name] [Year]

> A yearly check of every insurance policy your household has: what
> each one covers, what it costs, where the gaps and overlaps are, and
> what to change before the next renewal. Written in plain language for
> any country, using generic insurance concepts (sum insured,
> deductible or excess, replacement cost, waiting period) and the
> "document and insure your property" practice promoted by FEMA on
> Ready.gov. Replace every `[bracketed]` value and every row marked
> *Example*. Amounts are in `[currency]`; examples use USD. This is a
> document format for organising your own information, not insurance,
> financial, tax or legal advice. Read each policy's own wording, and
> ask a licensed adviser or the insurer when you are unsure.

<!--
Guidance: How to use this template
- Do this review once a year (pick a fixed month) and after a life
  event: marriage or separation, a birth, a new home, a new job, a
  large purchase, a move to another country, or retirement.
- Gather first: each policy's schedule (the page with the amounts and
  dates), the policy wording, recent premium notices, and your
  employer's benefits summary.
- Fill section 2 (Policy inventory) first. Then work through each risk
  section, and collect every gap or overlap in section 10.
- Do not cancel an old policy before the new one is in force. A day
  without cover is the classic mistake.
- Keep a short summary of the policies in your Emergency Document File
  (`personal/emergency-document-file`) so your family knows they exist.
  Related: Financial Plan (`personal/financial-plan`), Emergency Fund
  Plan (`personal/emergency-fund-plan`), Net Worth Statement
  (`personal/net-worth-statement`), Home Maintenance Log
  (`personal/home-maintenance-log`).
-->

## Document control

<!-- Guidance: Record the review year, who did it and which policies were in scope. A review that skips the employer's benefits often misses the largest life cover. -->

| Field | Value |
|---|---|
| Document ID | [INS-YYYY] *(Example: INS-2026)* |
| Household | [Household name] *(Example: Sam and Jordan Ellison, one child, Riley, aged 6)* |
| Review year | [YYYY] |
| Version | [1.0] |
| Status | [Draft / Reviewed / Actions complete] |
| Owner | [@owner] *(Example: Jordan Ellison)* |
| Reviewers | [@co-owner], [Adviser or broker, if any] |
| Last updated | YYYY-MM-DD |
| Next review | YYYY-MM-DD |
| Classification | Private |
| Currency | [Currency] *(Example: USD)* |
| Country or region | [Country, state or region] |
| Policies in scope | [All personal policies plus employer benefits] |

### Approvals

| Role | Name | Decision | Date |
|---|---|---|---|
| Owner | [@owner] | [Agreed actions] | YYYY-MM-DD |
| Co-owner or partner | [@co-owner] | [Agreed actions] | YYYY-MM-DD |

### Revision history

| Version | Date | Author | Change summary |
|---|---|---|---|
| 0.1 | YYYY-MM-DD | [@owner] | First draft |
| 1.0 | YYYY-MM-DD | [@owner] | *Example:* Review complete, five actions agreed |
| 1.1 | YYYY-MM-DD | [@co-owner] | *Example:* Home sum insured raised after rebuild estimate |
| 1.2 | 2026-10-25 | [Template authors] | Worked example aligned with the Ellisons' Financial Plan (ages, one child, incomes, mortgage 268,000, two cars, premiums 410 a month); US coinsurance clause and benefit timing added |

## Contents

1. [Household profile and main risks](#1-household-profile-and-main-risks)
2. [Policy inventory](#2-policy-inventory)
3. [Health cover](#3-health-cover)
4. [Life insurance](#4-life-insurance)
5. [Income protection and disability](#5-income-protection-and-disability)
6. [Home and contents](#6-home-and-contents)
7. [Personal liability](#7-personal-liability)
8. [Vehicles](#8-vehicles)
9. [Travel and other cover](#9-travel-and-other-cover)
10. [Gaps, overlaps and cost](#10-gaps-overlaps-and-cost)
11. [Claims log](#11-claims-log)
12. [Actions and renewal calendar](#12-actions-and-renewal-calendar)
13. [Glossary and references](#13-glossary-and-references)

## 1. Household profile and main risks

<!-- Guidance: Insurance protects against losses you could not pay for yourself. Start from your situation, not from the policies you happen to have. Ask: what event would hurt us most financially? -->

Describe who depends on whom and what you own. This decides which risks matter.

| Item | Value |
|---|---|
| Adults and ages | *Example:* Sam 38 (salaried engineer), Jordan 36 (salaried nurse) |
| Dependants | *Example:* One child, Riley, 6; Jordan's mother may need help from about 2030 |
| Income earners | *Example:* Sam USD 82,000 a year gross; Jordan USD 60,000 a year gross (USD 142,000 together; take-home USD 8,900 a month) |
| Home | *Example:* Owned jointly, value USD 410,000, mortgage balance USD 268,000 (USD 1,950 a month, final payment 2042-03) |
| Vehicles | *Example:* Two cars: car 1 (2023 model, about USD 14,500, car loan) and car 2 (2015 model, about USD 6,000, to be replaced in 2029) |
| Emergency fund | *Example:* USD 18,000 (see `personal/emergency-fund-plan`) |
| Special exposures | *Example:* Home near a stream, outside the mapped flood zone but with surface-water risk noted by the surveyor; Jordan works night shifts and cycles to work |

**Risk ranking.** Rate each risk by how likely it is and how much it would cost. Insure the high-cost risks first, even if they are unlikely; pay small, frequent losses from savings.

| ID | Risk | Likelihood | Financial impact | Handle by |
|---|---|---|---|---|
| RSK-001 *(Example)* | Death of an earner | Low | Very high | Life insurance |
| RSK-002 *(Example)* | Long illness or injury, unable to work | Low to medium | Very high | Income protection, emergency fund |
| RSK-003 *(Example)* | Serious medical treatment | Medium | High | Health cover |
| RSK-004 *(Example)* | Fire, storm or surface-water flooding at home | Low | Very high | Home cover; check flood cover |
| RSK-005 *(Example)* | Being sued for injuring someone | Low | High | Liability cover |
| RSK-006 *(Example)* | Car accident | Medium | Medium to high | Vehicle insurance |
| RSK-007 *(Example)* | Broken phone | Medium | Low | Savings (no insurance) |

```mermaid
flowchart LR
  R["Risk"] --> Q1{"Could we pay the loss from savings?"}
  Q1 -- Yes --> S["Keep the risk, use the emergency fund"]
  Q1 -- No --> Q2{"Is cover available at a fair price?"}
  Q2 -- Yes --> I["Insure it"]
  Q2 -- No --> M["Reduce the risk another way"]
```

## 2. Policy inventory

<!-- Guidance: One row per policy, including cover through an employer, a bank account or a credit card. Use the last 4 digits of policy numbers only. -->

| ID | Type | Insurer | Covers | Policy (last 4) | Sum insured or limit | Deductible or excess | Annual premium | Renewal date | Paid by |
|---|---|---|---|---|---|---|---|---|---|
| POL-001 *(Example)* | Term life, 20 years | [Insurer] | Sam | 8817 | USD 500,000 | n/a | USD 420 | YYYY-03-01 | Direct debit |
| POL-002 *(Example)* | Term life, 20 years | [Insurer] | Jordan | 8818 | USD 250,000 | n/a | USD 380 | YYYY-03-01 | Direct debit |
| POL-003 *(Example)* | Group life | [Insurer via employer] | Sam | n/a | 2 x salary = USD 164,000 | n/a | Employer paid | Yearly enrolment | Employer |
| POL-004 *(Example)* | Home and contents | [Insurer] | Building and belongings | 4410 | Building USD 280,000; contents USD 60,000 | USD 1,000 | USD 1,380 | YYYY-09-15 | Lender escrow, inside the USD 450 a month for property tax and home insurance |
| POL-005 *(Example)* | Cars, multi-car policy | [Insurer] | Car 1 and car 2, third parties | 3376 | Liability [limit]; cars at market value | USD 500 | USD 1,560 | YYYY-06-01 | Card, yearly; set aside from the transport budget |
| POL-006 *(Example)* | Health, family plan | [Insurer] | Whole family | 2209 | Plan limits | USD 1,500 family deductible | USD 3,220 (household share) | Yearly enrolment | Direct debit |
| POL-007 *(Example)* | Income protection | [Insurer] | Sam | 7720 | 60% of gross salary | 90-day waiting period | USD 900 | YYYY-11-01 | Direct debit |
| POL-008 *(Example)* | Annual travel | [Insurer] | Whole family | 5051 | Medical [limit] | USD 100 | USD 160 | YYYY-07-01 | Card |
| POL-009 *(Example)* | Group life | [Insurer via employer] | Jordan | n/a | 2 x salary = USD 120,000 | n/a | Employer paid | Yearly enrolment | Employer |
| POL-010 | [Type] | [Insurer] | [Covers] | [Last 4] | [Limit] | [Deductible] | [Premium] | [Date] | [Payer] |

**Total annual premium (Example):** USD 420 + 380 + 1,380 + 1,560 + 3,220 + 900 + 160 = USD 8,020, about USD 668 a month. Group life (POL-003 and POL-009) is paid by the employers and is not in the total.

How the premiums map to the household Budget (`personal/budget`) and Financial Plan (`personal/financial-plan`) *(Example)*: life, health and disability premiums (POL-001, POL-002, POL-006, POL-007) are 420 + 380 + 3,220 + 900 = USD 4,920 a year, exactly the USD 410 a month "insurance premiums" line. Home insurance (POL-004) is collected by the mortgage lender inside the USD 450 a month for property tax and home insurance. The car policy (POL-005) is paid yearly from money set aside in the transport line (about USD 130 a month), and travel cover (POL-008) from flexible spending. Mapping each premium to one budget line stops a renewal from arriving as a surprise and shows which line to cut if a policy is dropped.

The Financial Plan's life cover estimate (section 7) counts employer cover only, to show how large the gap would be without personal policies; this review lists the term policies POL-001 and POL-002 that the household already holds and tests whether they close that gap (section 4.2).

## 3. Health cover

<!-- Guidance: Health systems differ a lot between countries. Describe what the public system covers for you, then what any private or employer plan adds, and what you would still pay yourself. -->

| Question | Answer |
|---|---|
| Public health system you belong to | [Name, see the local equivalents table in section 13] |
| Private or employer plan | *Example:* POL-006 family plan, bought directly and paid by direct debit |
| Deductible (what you pay before the plan pays) | *Example:* USD 1,500 for the family each year |
| Co-payment or co-insurance after the deductible | [Amount or percentage] |
| Out-of-pocket maximum (the most you pay in a year, if the plan has one) | [Amount] |
| Doctors and hospitals in the plan's network | [Yes / check before each visit] |
| Dental and vision | [Covered / separate plan / not covered] |
| Cover when abroad | [Plan rules / travel policy POL-008] |
| What happens if either adult changes employer | [Effect on group life POL-003 and POL-009, continuation options and time limits; check local rules] |

**Worst-case cost this year (Example):** deductible USD 1,500 plus co-insurance up to the plan's out-of-pocket maximum. Check that the emergency fund can cover this amount.

## 4. Life insurance

<!-- Guidance: Life insurance replaces money that would stop if an earner died. The amount needed falls as debts are paid and children grow up. Recalculate it at each review instead of keeping the number you chose years ago. -->

### 4.1 How much cover is needed

A simple needs estimate adds what the family would need and subtracts what it already has:

$$
\text{Cover gap} = (\text{Debts to clear} + \text{Final costs} + \text{Future goals} + \text{Income replacement}) - (\text{Existing cover} + \text{Usable savings})
$$

Income replacement is the present value of the yearly income the family would need for a number of years:

$$
\text{Income replacement} = A \times \frac{1 - (1 + r)^{-n}}{r}
$$

where $A$ is the yearly amount the family would need, $r$ is an assumed yearly return after inflation (a "real" return), and $n$ is the number of years. The result is illustrative: it depends heavily on the assumptions.

### 4.2 Worked example for Sam

| Line | Basis | Amount (USD) |
|---|---|---|
| Income replacement *(Example)* | A = 30,000 a year for n = 15 years at r = 3%: annuity factor 11.9379 | 358,138 |
| Mortgage to clear *(Example)* | Current balance (home value 410,000) | 268,000 |
| Final costs *(Example)* | Funeral and estate costs, estimate | 15,000 |
| Riley's education *(Example)* | Family goal GOAL-004 | 60,000 |
| **Total needs** | | **701,138** |
| Group life POL-003 *(Example)* | 2 x USD 82,000 | 164,000 |
| Investments usable *(Example)* | General investments 26,500 + education account 9,800; emergency fund and retirement accounts excluded | 36,300 |
| **Total resources** | | **200,300** |
| **Cover gap** | 701,138 - 200,300 | **500,838** |
| Existing personal cover POL-001 *(Example)* | Term life | 500,000 |
| **Surplus or shortfall** | 500,000 - 500,838 | **Shortfall 838** |

The USD 30,000 yearly need is the household's spending after the mortgage is cleared, less Jordan's own take-home pay. Reading the example: the shortfall of USD 838 is negligible, so Sam's cover is about right today; review it if the mortgage, the education goal or Jordan's pay changes. The Financial Plan reaches a different gap (USD 305,500) because it uses a simpler need (five years of USD 40,000 support) and counts cash as well; neither number is wrong, but use one method consistently from year to year. Repeat the calculation for Jordan, with group life POL-009 (USD 120,000) and term life POL-002 (USD 250,000). Note that group life cover usually ends when the person leaves the employer, so do not rely on it alone.

### 4.3 Policy checks

| Check | Sam | Jordan |
|---|---|---|
| Type (term, whole of life, other) | Term, 20 years | Term, 20 years |
| End date versus the youngest child's independence | [Ends YYYY] *(Example: ends 2046, when Riley is 26)* | [Ends YYYY] *(Example: ends 2046)* |
| Beneficiary on file matches your wishes | [Yes / update] | [Yes / update] |
| Premium fixed or rising | [Fixed] | [Fixed] |
| Held in trust or similar arrangement, where local law offers it | [Yes / no / ask adviser] | [Yes / no / ask adviser] |

## 5. Income protection and disability

<!-- Guidance: For working-age adults, being unable to work for a long time is often more likely than dying young, and can cost as much. Check what your employer and the public system pay before buying more. -->

| Question | Sam *(Example)* | Jordan *(Example)* |
|---|---|---|
| Employer sick pay | Full pay for 4 weeks | Statutory minimum only |
| Public disability benefit | [Scheme name and rough level] | [Scheme name] |
| Private income protection | POL-007, 60% of gross | None |
| Benefit amount | 60% x USD 82,000 = USD 49,200 a year, USD 4,100 a month | n/a |
| Waiting period (time before payments start) | 90 days | n/a |
| Benefit period (how long it pays) | To age 65 | n/a |
| Definition of disability | [Own occupation / any occupation] | n/a |
| Can the emergency fund cover the waiting period? | Partly: the 90-day wait plus about one month until the first payment (benefits are usually paid monthly in arrears) is about 4 months. Sick pay covers the first 4 weeks, so the USD 18,000 fund must cover Sam's share of spending for about 3 months; it can, but only just while it is below its USD 36,000 target | n/a |

**Possible gap (Example):** Jordan has no cover beyond the statutory minimum. Get quotes for a policy that pays 50% to 60% of gross pay with a waiting period that matches the emergency fund.

## 6. Home and contents

<!-- Guidance: The building sum insured should match the cost to rebuild, which is not the market price of the home. Underinsurance can reduce every claim, not just total losses, under policies that apply an averaging rule (UK) or a coinsurance clause (US, often requiring cover of 80% of replacement cost). -->

### 6.1 Building

| Item | Value |
|---|---|
| Owner or tenant | *Example:* Owner |
| Rebuild cost estimate and source | *Example:* USD 320,000 from [insurer's calculator or surveyor], YYYY-MM-DD |
| Building sum insured | *Example:* USD 280,000 |
| Difference | *Example:* USD 40,000 short (12.5% of the rebuild cost) |
| Replacement cost or actual cash value | [Replacement cost pays to rebuild without deducting wear; actual cash value deducts depreciation] |
| Flood, earthquake, storm cover | *Example:* Flood excluded; the home is outside the mapped flood zone, but surface-water risk means a separate flood policy is worth pricing |
| Deductible or excess | USD 1,000 |

Flood and earthquake cover are often sold separately and a new flood policy may only start after a waiting period. Check the rules in your area well before the risky season (in the United States, see floodsmart.gov for the National Flood Insurance Program).

### 6.2 Contents

Keep a home inventory: a room-by-room list with photos or a video, purchase receipts and serial numbers. Store a copy away from home (for example in the encrypted folder named in the Emergency Document File).

| Room | Main items | Estimated replacement cost (USD) | Photos taken |
|---|---|---|---|
| Living room *(Example)* | Sofa, TV, bookshelves | 6,500 | YYYY-MM-DD |
| Kitchen *(Example)* | Appliances, cookware | 9,000 | YYYY-MM-DD |
| Bedrooms *(Example)* | Beds, clothes, furniture | 22,000 | YYYY-MM-DD |
| Study *(Example)* | Computers, desk | 7,500 | YYYY-MM-DD |
| Other *(Example)* | Bikes, tools, garden | 8,000 | YYYY-MM-DD |
| **Total** | | **53,000** | |

Contents sum insured USD 60,000 covers the USD 53,000 estimate with USD 7,000 margin *(Example)*. Check the single-item limit for jewellery, bikes or electronics: items above it may need to be listed separately.

## 7. Personal liability

<!-- Guidance: Liability cover pays if you are legally responsible for injuring someone or damaging their property. It is often part of home or car insurance; an "umbrella" policy adds a higher limit on top. -->

| Source of liability cover | Limit | Who is covered | Notes |
|---|---|---|---|
| Home policy POL-004 *(Example)* | [Limit] | Household | Covers incidents at home and some elsewhere |
| Car policy POL-005 *(Example)* | [Limit] | Drivers named | Legal minimum may be low |
| Umbrella or excess liability *(Example)* | None | n/a | Consider if net worth or income is high |

Ask: would the current limit cover a serious injury claim where you live? Do children, pets, a home business, a rental property or volunteering create extra exposure?

## 8. Vehicles

<!-- Guidance: Check named drivers, use (commuting, business, ride-hailing), the car's current value and whether comprehensive cover is still worth it for an older car. -->

| Check | Car 1 *(Example)* | Car 2 *(Example)* |
|---|---|---|
| Level of cover | Comprehensive (required by the car loan) | Comprehensive |
| Car's market value | USD 14,500 (2023 model) | USD 6,000 (2015 model) |
| Deductible or excess | USD 500 | USD 500 |
| Named drivers | Sam, Jordan | Sam, Jordan |
| Use declared | Commuting and personal | Commuting (Jordan's shifts) and personal |
| Third-party liability limit | [Limit; compare with legal minimum] | [Limit; compare with legal minimum] |
| Extras | Roadside assistance, courtesy car | Roadside assistance |
| Mileage declared versus actual | 10,000 a year declared; about 9,000 actual | 6,000 a year declared; about 6,500 actual: correct it |

A lender usually requires comprehensive cover while a car loan is outstanding, so check the loan agreement before reducing cover on car 1. Car 2 is the candidate for a lower level of cover. Declare mileage honestly: understating it can reduce a claim. When the yearly premium for damage to your own car approaches a large share of the car's value, compare it with keeping that risk yourself and keeping only the required third-party cover.

## 9. Travel and other cover

<!-- Guidance: List smaller policies and the cover that comes free with bank accounts or cards. Many households pay twice for the same thing here. -->

| ID | Cover | Source | Needed? | Notes |
|---|---|---|---|---|
| OTH-001 *(Example)* | Annual travel | POL-008 | Yes | Check medical limit and pre-existing conditions |
| OTH-002 *(Example)* | Travel cover with premium credit card | Card benefit | Overlap | Compare with POL-008 before renewal |
| OTH-003 *(Example)* | Phone insurance | Mobile contract, USD 12 a month | No | Cost USD 144 a year; cover from savings |
| OTH-004 *(Example)* | Extended warranty on washing machine | Retailer | No | Low-cost item; let it lapse |
| OTH-005 | Pet insurance | [Insurer] | [Yes / no] | [Limits] |
| OTH-006 | Long-term care cover | [Insurer or public scheme] | [Review at later age] | [Notes] |
| OTH-007 | Legal expenses cover | [Home policy add-on] | [Yes / no] | [Notes] |

## 10. Gaps, overlaps and cost

<!-- Guidance: Pull together everything you found. A gap is a large risk without enough cover; an overlap is paying twice. Also test whether your deductibles fit your emergency fund. -->

| ID | Finding | Type | Estimated cost or saving | Priority |
|---|---|---|---|---|
| GAP-001 *(Example)* | Building underinsured by USD 40,000 | Gap | About USD 150 more a year | High |
| GAP-002 *(Example)* | No flood cover; surface-water risk noted, although outside the mapped flood zone | Gap | Get quotes | High |
| GAP-003 *(Example)* | Jordan has no income protection | Gap | Quote needed | Medium |
| GAP-004 *(Example)* | No umbrella liability | Gap | Quote needed | Low |
| OVL-001 *(Example)* | Phone insurance not needed | Overlap or low value | Saving USD 144 a year | Medium |
| OVL-002 *(Example)* | Travel cover on card and POL-008 | Overlap | Saving up to USD 160 a year | Low |

**Deductible test (Example).** If two deductibles hit in the same year (home USD 1,000 and health USD 1,500), the household pays USD 2,500. The emergency fund of USD 18,000 covers this, so raising the home deductible to USD 2,500 could lower the premium without real strain. Ask for a quote before deciding.

**Cost share.** Total premiums of USD 8,020 compare with gross household income of USD 142,000 (82,000 + 60,000): about 5.6% *(Example)*. There is no correct percentage; use it to see the trend over the years.

## 11. Claims log

<!-- Guidance: Record every claim, even small ones. Insurers ask about past claims, and a record helps if a claim is disputed. -->

| ID | Date of event | Policy | What happened | Amount claimed | Amount paid | Status | Reference (last 4) |
|---|---|---|---|---|---|---|---|
| CLM-001 *(Example)* | YYYY-MM-DD | POL-004 | Water leak from washing machine | USD 3,200 | USD 2,200 (after USD 1,000 deductible) | Closed | 6013 |
| CLM-002 | YYYY-MM-DD | [Policy] | [Event] | [Amount] | [Amount] | [Open / closed / disputed] | [Last 4] |

**Making a claim, in short:** report it quickly, take photos before cleaning up, keep damaged items until the insurer says otherwise, keep receipts for emergency repairs, and write down every call (date, name, what was said). If you disagree with a decision, use the insurer's complaint process first, then the independent complaint or ombudsman scheme where you live.

## 12. Actions and renewal calendar

<!-- Guidance: Turn findings into actions with an owner and a date before the relevant renewal. Do not cancel any policy until its replacement is confirmed in writing. -->

### 12.1 Actions

| ID | Action | Linked finding | Owner | Due | Status |
|---|---|---|---|---|---|
| ACT-001 *(Example)* | Raise building sum insured to USD 320,000 | GAP-001 | Jordan | Before YYYY-09-15 | Open |
| ACT-002 *(Example)* | Get three flood quotes | GAP-002 | Sam | YYYY-MM-DD | Open |
| ACT-003 *(Example)* | Get income protection quotes for Jordan | GAP-003 | Jordan | YYYY-MM-DD | Open |
| ACT-004 *(Example)* | Cancel phone insurance | OVL-001 | Sam | YYYY-MM-DD | Open |
| ACT-005 *(Example)* | Check card travel cover terms; decide on POL-008 | OVL-002 | Jordan | Before YYYY-07-01 | Open |
| ACT-006 *(Example)* | Confirm beneficiaries on POL-001 to POL-003 and POL-009 | Section 4.3 | Sam | YYYY-MM-DD | Open |
| ACT-007 *(Example)* | Correct declared mileage on car 2 and price third-party-only cover for it | Section 8 | Jordan | Before YYYY-06-01 | Open |

### 12.2 Renewal calendar

| Month | Policy | What to do 4 to 6 weeks before |
|---|---|---|
| March *(Example)* | POL-001, POL-002 life | Confirm beneficiaries; no need to shop if premiums are fixed |
| June *(Example)* | POL-005 car | Compare at least two quotes; check mileage |
| July *(Example)* | POL-008 travel | Decide based on ACT-005 |
| September *(Example)* | POL-004 home | Update rebuild cost and contents total |
| November *(Example)* | POL-007 income protection; employer enrolment | Check benefits choices |

```mermaid
stateDiagram-v2
  [*] --> Inventory
  Inventory --> Assess: all policies listed
  Assess --> Findings: gaps and overlaps
  Findings --> Actions: owners and dates
  Actions --> Renewals: replacements confirmed before cancelling
  Renewals --> Inventory: next yearly review
```

### 12.3 Running the review well

**Before you start.** Collect every policy schedule, the latest
premium notices, the employer benefits summary for each adult and the
last 12 months of bank and card statements. The statements matter
because they show policies you have forgotten: add-ons on phone bills,
cover bundled with a bank account, or a pet policy paid by card. Put
everything in one folder and work through section 2 first, one row per
policy, before forming any opinion about what to keep.

**Order of work.** Rank the risks in section 1 before you look at
prices. The most important questions are about events you could not
pay for yourselves: the death or long illness of an earner, the loss
of the home, and a serious liability claim. Small, frequent losses (a
broken phone, a scratched car) are usually cheaper to pay from savings
than to insure, because premiums include the insurer's costs and
profit. Then check each large risk in sections 3 to 8, and only at the
end look for savings in section 10.

**Review points for each policy.**

- Does the sum insured still match today's value or need? Rebuild
  costs, contents and the mortgage balance all change from year to
  year.
- Is the deductible or excess one the emergency fund could pay twice
  in the same year?
- Are the named people (drivers, beneficiaries, insured persons)
  correct after any life event?
- Does the policy wording exclude something you assumed was covered,
  such as flood, wear and tear, business use or a second home?
- Will the cover still exist if the policyholder changes job, moves
  or retires? Employer cover usually stops when employment ends.

**Common errors to avoid.** Cancelling an old policy before the new
one is confirmed in writing, leaving a day without cover. Choosing the
cheapest quote without comparing exclusions and limits. Forgetting to
tell the insurer about a change that affects the risk (a home
business, a new driver, higher mileage), which can reduce or void a
claim. Counting employer life cover as permanent. And treating the
premium total as the measure of success: a review that lowers premiums
but leaves the household underinsured has made things worse.

**Using the result.** Copy the agreed actions into section 12.1 with an
owner and a date before the relevant renewal, put a short summary of
each policy into the Emergency Document File
(`personal/emergency-document-file`), and update the insurance line of
the Budget (`personal/budget`) if premiums change. In the example the
review changes no premiums yet: each action first needs quotes, and
the household decides once those arrive.

## 13. Glossary and references

<!-- Guidance: Keep definitions short; add any term from your own policies that you had to look up. -->

### 13.1 Glossary

| Term | Meaning |
|---|---|
| Premium | What you pay for the policy |
| Sum insured or limit | The most the insurer will pay |
| Deductible or excess | The part of each claim you pay yourself |
| Waiting period | Time before a policy or benefit starts to pay |
| Exclusion | Something the policy does not cover |
| Beneficiary | The person who receives a life insurance payout |
| Term life insurance | Life cover for a fixed number of years, with no payout if you outlive it |
| Replacement cost | Pays to rebuild or replace without deducting wear and tear |
| Actual cash value | Replacement cost minus depreciation |
| Underinsurance | Sum insured lower than the real cost of the loss |
| Umbrella policy | Extra liability cover above home and car limits |
| Real return | Investment return after inflation |

### 13.2 Local equivalents (names only)

Examples only, not exhaustive, not advice. Names as of 2026-10; check local rules.

| Concept | Examples of local names |
|---|---|
| Public health system | Medicare and Medicaid (United States); NHS (United Kingdom); provincial health plans (Canada); Medicare (Australia); gesetzliche Krankenversicherung (Germany); Assurance Maladie (France); National Health Insurance (Japan, Korea); social health insurance (BHYT, Vietnam) |
| Complaint or ombudsman scheme | State insurance department (United States); Financial Ombudsman Service (United Kingdom); Australian Financial Complaints Authority (Australia); Versicherungsombudsmann (Germany) |

### 13.3 References

| Reference | Version or date checked | Use |
|---|---|---|
| FEMA, Ready.gov "Document and Insure Your Property" and "Are You Ready?" guide (FEMA P-2064, September 2020), ready.gov | Checked 2026-10-25 | Practice of a home inventory and checking insurance options |
| FEMA and Operation HOPE, Emergency Financial First Aid Kit, ready.gov/financialpreparedness | Page updated 2026-03-13 | Keeping insurance information with household records |
| NAIC (National Association of Insurance Commissioners), consumer guidance on an annual insurance review | Name only, not adapted | Further reading |
| [Your policy wordings and schedules] | [Dates] | The binding terms of your cover |

## Standard and licence note

Based on general insurance concepts and on the property-documentation
practice promoted by FEMA on Ready.gov, a US federal government source
in the public domain; FEMA and NAIC are named only to identify the
sources, and this template is not affiliated with or endorsed by them.
The text, tables, formulas and examples are original and written for
this collection; the household "Sam and Jordan Ellison" and every
amount are fictional and illustrative. Insurance products and rules
differ by country and by policy: check the current official guidance,
your policy wording and local law before acting. Template licence: MIT.