The Importance of Decluttering Your Paper Trail
As time passes, it’s easy for our homes to become cluttered with paperwork, including old insurance policies. While it’s important to keep certain policies for reference or legal reasons, others can be safely discarded. Knowing how long to keep insurance policies can help you declutter your space and protect your privacy.
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General Rule of Thumb
A general rule of thumb is to keep insurance policies for at least seven years. This is because most insurance companies have a “look-back period” of seven years, meaning they can request old policies for auditing purposes. Additionally, many states have statutes of limitations for filing insurance claims, which can range from two to ten years. By keeping policies for at least seven years, you’ll ensure you have them on hand if needed.
Exceptions to the Rule
While the seven-year rule is a good starting point, there are some exceptions to consider:
- Life insurance policies: Keep life insurance policies indefinitely, especially if they have a cash value component.
- Health insurance policies: Keep health insurance policies for at least two years, as that is the timeframe for most health insurance claims.
- **Auto insurance policies:** Keep auto insurance policies for at least six years, as most states have a six-year statute of limitations for filing car accident claims.
li>**Homeowners and renters insurance policies:** Keep homeowners and renters insurance policies for at least three years, as many states have a three-year statute of limitations for filing property damage claims.
Tips for Keeping Track of Policies
Here are some tips for keeping track of your insurance policies:
- Keep all policies in a secure place, such as a fireproof safe or a locked filing cabinet.
- Make digital copies of each policy and store them in a secure cloud storage service.
- Review your policies regularly and update them as needed.
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Frequently Asked Questions
Here are some frequently asked questions about keeping insurance policies:
- What should I do with old insurance policies that I no longer need?
Shred them or otherwise destroy them securely. - What if I lose an insurance policy? Contact your insurance company for a replacement copy.
- How often should I review my insurance policies? You should review your policies annually or whenever you have a major life event, such as getting married or buying a house.
How Long To Keep Insurance Policies
Conclusion
Knowing how long to keep insurance policies can help you declutter your space, protect your privacy, and ensure you have the necessary documentation in case of a claim. By following the guidelines outlined above, you can keep your insurance policies organized and accessible.
Are you interested in learning more about insurance policies? Check out our other articles on the topic!
