New Year Insurance Checklist - What Cerritos Residents Should Review in 2026

The start of a new year brings resolutions, fresh goals, and the perfect opportunity to review something most people forget: their insurance coverage.

You wouldn't drive your car for years without an oil change. You shouldn't go years without reviewing your insurance, either. Life changes constantly—new cars, home improvements, job changes, family additions—and your insurance needs to keep pace.

For Cerritos residents heading into 2026, insurance rates are rising an average of 8-12% across carriers. This makes it even more critical to review your coverage now, optimize your policies, and ensure you're getting the protection you need at the best possible price.

This comprehensive checklist will help you start 2026 properly protected.

Why January Is the Perfect Time to Review Insurance

Most people only think about insurance in two situations: when they're buying it initially or when they need to file a claim. That's a mistake.

January offers unique advantages for insurance review:

Clean Slate Mindset: You're already in planning mode for the new year. Add insurance to your list of things to optimize.

Before Rate Increases Hit: Many carriers implement rate increases in Q1. Reviewing now lets you shop before your rates jump.

Tax Season Preparation: You'll need accurate insurance information for tax deductions (home office, rental properties, business insurance).

Annual Reflection: You can accurately assess what changed in the past year that might affect your coverage needs.

Discount Opportunities: New discounts become available in the new year. Good student grades from fall semester, newly installed security systems from the holidays, or mileage reductions.

Here's what every Cerritos resident should review in January 2026.

Life Changes That Require Insurance Updates

Start by asking yourself: What changed in my life over the past year?

Major Life Events

Got Married or Divorced Marriage typically means combining policies for better rates. Most couples save 15-25% by bundling. Divorce means separating policies and ensuring both parties have adequate coverage.

Action item: Contact us to review your marital status and explore multi-policy discounts or separate individual policies.

Had a Baby or Adopted A new family member increases your life insurance needs. You also need adequate liability coverage and may want to increase your auto coverage limits to protect your growing family's future.

Action item: Review life insurance policies and increase liability limits on home and auto insurance. Consider adding an umbrella policy.

Bought or Sold a Home Home purchases require new homeowners insurance. Home sales mean canceling old policies and ensuring you're not paying for coverage you don't need.

Action item: Ensure proper replacement cost coverage on new homes. Cancel old policies to avoid double-paying. Review whether you need earthquake or flood coverage for your new property.

Job Change Lost your job? Got a new one? Started working from home? Each scenario affects your insurance needs. Unemployment might mean you need more affordable coverage temporarily. New jobs in certain professions (healthcare, finance) might require professional liability insurance. Working from home means your homeowners policy might not cover your business equipment.

Action item: Review employment changes and assess business insurance needs, home office coverage, and commute-based auto insurance discounts.

Retirement Retirees typically drive less, which can reduce auto insurance premiums by 10-15%. You might also downsize homes or move to a different area with different insurance rates.

Action item: Update mileage information with your insurer, review home coverage if you've moved, and consider long-term care insurance.

Property Changes

Home Renovations or Additions That kitchen remodel, bathroom addition, or pool installation increased your home's value. Your insurance coverage needs to increase accordingly, or you'll be under-insured if disaster strikes.

California homeowners who renovate often under-report improvements, leaving them with insufficient dwelling coverage. A $50,000 kitchen remodel should increase your dwelling coverage by roughly the same amount.

Action item: Document all improvements with photos and receipts. Contact us to increase your dwelling coverage appropriately.

New Roof, HVAC, or Major Systems Replacing major home systems can actually lower your insurance premiums. Many insurers offer discounts for new roofs (especially impact-resistant materials), updated electrical systems, new plumbing, and modern HVAC systems.

Action item: Notify your insurer of major system replacements and ask about applicable discounts. Save receipts and warranties.

Security Systems or Smart Home Devices Installed a Ring doorbell, security system, or smart home monitoring over the holidays? Most insurers offer 5-15% discounts for qualifying security devices.

Action item: Report new security systems to your insurer and request applicable discounts. You may need to provide proof of installation or monitoring service.

Trampoline, Pool, or Other Liability Risks Adding a trampoline, pool, hot tub, or getting a dog increases your liability exposure. Some insurers won't cover certain dog breeds or trampolines. Others will cover them but charge higher premiums or require higher liability limits.

Action item: Notify your insurer immediately if you've added liability risks. Failure to disclose can result in claim denials. Consider increasing liability coverage or adding an umbrella policy.

Vehicle Changes

New Vehicle Purchase Bought a new car? Leased a vehicle? You need to update your auto insurance immediately—typically within 30 days. Lenders require comprehensive and collision coverage on financed vehicles.

Action item: Contact us before buying to understand insurance costs. Update your policy within 30 days of purchase. Explore multi-car discounts if adding a vehicle.

Teen Driver Adding a teen driver is one of the most significant insurance events. Premiums can increase 50-100% when you add a young driver. However, good student discounts (typically 10-25% off) can offset some of the cost.

Action item: Add your teen before they start driving. Explore good student discounts, driver training discounts, and telematics programs that reward safe driving.

Sold or Totaled a Vehicle If you sold a car or it was totaled in an accident, ensure you remove it from your policy to stop paying for coverage you don't need.

Action item: Notify us immediately when a vehicle is sold or totaled. We'll adjust your policy and ensure you're not overpaying.

Reduced Mileage Working from home? Retired? Driving less reduces your risk, which should reduce your premium. Low-mileage discounts kick in around 7,500-10,000 miles annually and can save 10-15%.

Action item: Report mileage reductions to your insurer. Consider usage-based insurance programs that track actual miles driven.

Income and Asset Changes

Significant Income Increase As your income grows, so does your liability exposure. Higher earners are more attractive lawsuit targets and need more liability protection. If your net worth (home equity + savings + investments) exceeds your current liability limits, you're at risk.

Action item: Review liability limits on all policies. If your net worth is $500K+ and you only have $300K in liability coverage, you're exposed. Consider umbrella insurance for $1M-5M in additional protection.

Investment Property Purchase Bought a rental property? Airbnb property? Investment real estate requires different insurance than your primary residence. Standard homeowners policies don't cover rental activities.

Action item: Purchase landlord insurance or commercial property insurance for rental properties. Consider liability coverage for short-term rental activities.

Coverage Gaps to Look For

Most people discover coverage gaps only when filing a claim. Don't wait. Here are the most common gaps we see in Cerritos:

Home Insurance Gaps

Replacement Cost vs. Market Value Confusion Your home's market value includes land. Your insurance should cover replacement cost—what it costs to rebuild your home, not what you could sell it for. Many homeowners insure for market value and end up significantly under-insured.

Example: Your Cerritos home is worth $800,000 (market value). The lot alone is worth $300,000. Your actual structure replacement cost is $500,000. If you insured for $800,000, you're over-insured. If you insured for $600,000 thinking you're being conservative, you're actually under-insured.

Action item: Review your dwelling coverage amount. Ensure it reflects accurate replacement cost, not market value. Request a replacement cost analysis from your insurer.

Missing Earthquake Coverage Standard homeowners policies in California DO NOT cover earthquake damage. Given California's seismic activity, this is a critical gap. Earthquake insurance is a separate policy through the California Earthquake Authority (CEA) or private insurers.

Cerritos is in a moderate earthquake risk zone. While not as high-risk as areas directly on fault lines, earthquake damage remains a real possibility.

Action item: Evaluate earthquake insurance. Even if you don't purchase it, make an informed decision rather than assuming you're covered. Consider your deductible options (typically 10-25% of dwelling coverage).

No Flood Coverage Homeowners insurance does not cover flood damage. Even if you're not in a FEMA-designated flood zone, you can still experience flooding from heavy rain, storm surge, or drainage issues.

Flood insurance through NFIP (National Flood Insurance Program) or private carriers is separate. It has a 30-day waiting period, so you can't buy it when storms are approaching.

Action item: Check your flood risk at FEMA's flood map website. Consider flood insurance even if you're not in a high-risk zone. Premiums in low-risk areas are often just $400-600/year.

Inadequate Personal Property Coverage Most homeowners significantly underestimate the value of their belongings. The average Cerritos home contains $50,000-100,000 in personal property (furniture, clothing, electronics, kitchenware, etc.).

Many policies default to 50-70% of dwelling coverage for personal property. If that's not enough, you're under-insured.

Action item: Create a home inventory. Use a home inventory app or simply walk through your house taking photos and videos. Estimate replacement cost for major items. Adjust your personal property limits if needed.

Insufficient Liability Limits Most homeowners policies include $100,000-300,000 in liability coverage. If someone is seriously injured on your property and sues you for $1 million, your policy pays its limit and you're personally liable for the rest.

Your home equity, savings, retirement accounts, and future wages are all at risk in a lawsuit.

Action item: Review your liability limits. Increase to at least match your net worth. If your net worth exceeds $500,000, consider umbrella insurance.

Auto Insurance Gaps

California Minimum Coverage Is Dangerously Low California requires only 15/30/5 liability coverage:

• $15,000 per person for bodily injury

• $30,000 per accident for bodily injury

• $5,000 for property damage

One serious accident easily exceeds these limits. The average car accident injury claim is $60,000-80,000. Totaling a luxury vehicle can exceed $100,000 in damages. Medical bills from a serious injury can reach $500,000+.

If you carry only state minimums and cause a serious accident, you're personally liable for everything above your policy limits.

Action item: Review your liability limits. We recommend minimum 100/300/100 for most drivers, higher for those with significant assets. The cost difference between minimum and adequate coverage is typically $200-400/year.

No Uninsured Motorist Coverage About 15-20% of California drivers are uninsured. If an uninsured driver hits you and injures you or your passengers, where does the money come from for medical bills?

Uninsured/underinsured motorist coverage (UM/UIM) protects you when the at-fault driver doesn't have adequate insurance.

Action item: Add UM/UIM coverage if you don't have it. This coverage typically costs $50-150/year and provides critical protection.

Comprehensive and Collision Deductibles Too High Choosing a $2,500 or $5,000 deductible to lower premiums seems smart until you need to file a claim. If you can't afford the deductible, you can't get your car repaired.

Balance deductible amounts with your ability to pay out-of-pocket if needed.

Action item: Review your comprehensive and collision deductibles. Ensure they're amounts you could comfortably pay if you needed to file a claim tomorrow.

Not Enough Medical Payments Coverage Medical payments (MedPay) coverage pays for medical expenses after an accident, regardless of fault. It covers you and your passengers. Unlike liability, you don't need to prove anyone was negligent—it just pays.

MedPay typically comes in $1,000-10,000 amounts and is inexpensive (often $30-100/year for $5,000 coverage).

Action item: Consider adding or increasing MedPay coverage, especially if you don't have good health insurance or frequently drive with passengers.

Business Insurance Gaps

Home Business Not Covered If you run a business from your home (even part-time), your homeowners policy likely excludes business-related claims. If a client trips in your home office and sues, your homeowners policy may deny the claim.

Business property (computers, inventory, equipment) used for business purposes is also typically excluded or severely limited under homeowners policies.

Action item: If you operate any business from home, even as a side hustle, get a business owner's policy (BOP) or in-home business endorsement. These policies start around $500-1,000/year.

No Professional Liability If you provide services or advice professionally (consultant, real estate agent, accountant, contractor, designer), you need professional liability insurance (errors & omissions). This covers you if a client sues claiming your work caused them financial harm.

Action item: Evaluate whether your profession requires professional liability insurance. Many contracts require proof of E&O coverage.

Missing Cyber Liability If your business handles any customer data—names, emails, credit cards, health information—you need cyber liability insurance. The average small business cyber breach costs $200,000. Many businesses never recover.

Cyber insurance covers breach response costs, notification requirements, legal fees, and business interruption from cyber attacks.

Action item: If you handle customer data digitally, get a cyber liability quote. Small business policies start around $500-1,500/year depending on data volume and security measures.

New California Insurance Regulations for 2026

California insurance regulations change frequently. Here's what's new for 2026 that might affect Cerritos residents:

Wildfire Risk Disclosure Requirements Insurance companies must now provide clearer disclosure about wildfire risk ratings for properties. While Cerritos isn't in a high-risk wildfire zone, nearby areas are, which can affect regional rates.

Rate Increase Transparency Insurers must now provide more detailed explanations when implementing rate increases, including specific factors driving the increase.

EV Charging Equipment Coverage Some insurers now include coverage for home EV charging equipment under homeowners policies, while others require separate endorsements. Clarification on this coverage is being standardized.

Gig Economy Worker Requirements Rideshare and delivery drivers face stricter insurance verification requirements. Apps are now required to verify proper coverage before allowing drivers to work.

Action item: Review how these changes might affect your coverage or rates. Contact us if you have questions about how new regulations impact your specific situation.

Discount Opportunities You Might Be Missing

Insurance companies offer dozens of discounts, but most people don't know about them or forget to ask. Here are discounts many Cerritos residents qualify for but aren't getting:

Home Insurance Discounts

Multi-Policy Bundling (15-25% savings) Bundle home and auto insurance with the same carrier for significant discounts. Some insurers offer additional discounts for adding umbrella, life, or other policies.

Home Security Systems (5-20% savings) Monitored security systems, burglar alarms, fire alarms, and smart home devices qualify for discounts. You may need to provide proof of monitoring service.

New Home (5-10% savings) Homes less than 10 years old often qualify for new home discounts due to modern building standards and updated systems.

Claims-Free History (10-20% savings) Going 3-5 years without filing a claim can earn you substantial discounts.

Protective Devices (5-15% savings) Deadbolts, smoke detectors, fire extinguishers, sprinkler systems, and storm shutters can all qualify for discounts.

Gated Community (2-5% savings) Living in a gated community reduces risk, which some insurers reward with lower premiums.

Roof Update (5-10% savings) New roofs, especially impact-resistant materials, qualify for discounts and may be required by some insurers.

Auto Insurance Discounts

Good Student (10-25% savings) Full-time students under 25 with B average or better qualify. Report cards from fall semester just came in—now's the time to claim this discount.

Defensive Driving Course (5-15% savings) Completing an approved defensive driving course earns discounts, especially for drivers over 55.

Low Mileage (10-20% savings) Driving less than 7,500-10,000 miles annually qualifies for low-mileage discounts.

Telematics/Usage-Based Insurance (10-30% savings) Programs that monitor your driving habits (speed, braking, mileage, time of day) reward safe drivers with significant discounts.

Anti-Theft Devices (5-15% savings) LoJack, GPS tracking, car alarms, and immobilizers qualify for theft prevention discounts.

Safe Driver (10-30% savings) Accident-free and violation-free driving for 3-5 years earns major discounts.

Paid-in-Full (5-10% savings) Paying your annual premium in one payment rather than monthly installments saves money.

Paperless/Auto-Pay (2-5% savings) Opting for electronic delivery and automatic payments typically saves a few percent.

Business Insurance Discounts

Claims-Free (10-20% savings) Operating without claims for several years qualifies for experience credits.

Safety Programs (5-15% savings) Implementing safety training, injury prevention programs, or risk management practices earns discounts.

Multiple Locations (5-10% savings) Insuring multiple business locations with one carrier typically offers discounts.

Association Memberships (5-10% savings) Belonging to industry associations or business groups sometimes qualifies for group discounts.

Action item: Review your policies and ask us about every discount you might qualify for. Many people miss $200-800 in annual savings simply by not asking about available discounts.

When to Shop Your Insurance vs. When to Stay

Not every year requires shopping your insurance. But certain situations make it essential:

Definitely Shop If:

Your Rates Increased 10%+ at Renewal Small increases (2-5%) are normal due to inflation. Double-digit increases warrant shopping around.

You Had No Claims but Rates Still Jumped If you've been claims-free but your premium spiked, another carrier might reward your good history with better rates.

You Haven't Shopped in 3+ Years Insurance companies offer their best rates to new customers. After 2-3 years, you're likely not getting the best deal anymore.

Your Life Situation Changed Significantly Marriage, new home, new job, retirement—major life changes mean your current carrier might not be the best fit anymore.

You Discovered Coverage Gaps If your current insurer can't or won't provide coverage you need (umbrella, flood, earthquake, cyber), shop for a carrier that can package everything.

Your Current Insurer Is Leaving California Some major insurers have reduced their California presence or stopped writing new policies. If yours is pulling back, it's time to shop.

Consider Staying If:

You Got Recent Claims Paid Without Issues If your insurer handled a claim well recently, that's valuable. Good claims service is worth something.

You Have Long-Term Discounts Some insurers offer increasing loyalty discounts. If you're 5+ years with a carrier and getting 15-20% loyalty discounts, factor that into any comparison.

Your Rates Are Already Competitive If we shop your insurance and find you're already getting great rates, there's no need to switch just to switch.

You Bundle Multiple Policies Bundling typically saves 15-25%. Breaking up policies to chase marginal savings elsewhere might cost you more overall.

Action item: We're independent agents who represent multiple carriers. We can shop your insurance in one conversation without you having to call five different companies. Let us compare your current rates against 5-10 carriers and tell you if you're getting a good deal or if we can save you money.

Your January 2026 Insurance Action Plan

Here's your step-by-step checklist for getting your insurance in order this month:

Week 1: Gather Information

• [ ] Locate all current insurance policies (home, auto, umbrella, life, business)

• [ ] Make a list of all life changes in the past year

• [ ] Document any home improvements, vehicle purchases, or major life events

• [ ] Take new photos of your home, vehicles, and valuables for records

Week 2: Review Coverage

• [ ] Review dwelling coverage on homeowners insurance (is it accurate replacement cost?)

• [ ] Check liability limits on all policies (do they match your net worth?)

• [ ] Verify auto coverage limits (are you carrying only state minimums?)

• [ ] Identify any coverage gaps (earthquake, flood, umbrella, business)

Week 3: Optimize Discounts

• [ ] Check if you qualify for good student discount (recent report cards)

• [ ] Document security system installations

• [ ] Report mileage reductions if you're driving less

• [ ] Ask about all available discounts you might qualify for

Week 4: Schedule Professional Review

• [ ] Contact us at (562) 402-1737 to schedule your free insurance review

• [ ] Bring all current policies to your appointment

• [ ] Ask questions about coverage gaps and rate competitiveness

• [ ] Get quotes from multiple carriers if needed

How We Help Cerritos Residents Optimize Insurance

As an independent insurance agency, we work differently than captive agents or direct-to-consumer companies.

We Represent You, Not One Company We represent 5-10 top-rated insurance carriers. This means we can shop your coverage across multiple companies in one conversation and find you the best combination of coverage and price.

We Do the Work For You Instead of calling five different insurance companies yourself, we do it for you. One phone call to us equals quotes from multiple carriers.

We Provide Ongoing Advocacy When you have a claim, we're your advocate. We work with the insurance company on your behalf to ensure you get fair treatment.

We Conduct Annual Reviews Every year, we review your coverage to ensure it still fits your needs and remains competitively priced. If we can save you money by moving you to a different carrier, we'll tell you—even if it means less commission for us.

We Know Cerritos We understand local risks, property values, and coverage needs specific to Cerritos and Orange County. This local knowledge means better recommendations for you.

Start 2026 Properly Protected

Insurance isn't something to think about once and forget. It requires regular review and updates to keep pace with your changing life.

This January, take 2-3 hours to review your insurance situation. Identify life changes, coverage gaps, and discount opportunities. Then schedule a professional review with us to ensure you're optimally protected at the best possible price.

Most of our clients find $200-800 in annual savings when we review their coverage—plus the peace of mind knowing they're properly protected if something goes wrong.

Don't wait until you need to file a claim to discover you don't have the coverage you thought you had. Start 2026 with confidence knowing your insurance is current, comprehensive, and competitively priced.

Ready to review your insurance?

📞 Call us: (562) 402-1737 📧 Email: info@pinoygeneralinsurance.com 📍 Visit us: 17304 Norwalk Blvd, Cerritos, CA 90703 🌐 Website: pinoygeneralinsurance.com

Free insurance reviews. No pressure, no obligation. Just clarity on what you have and whether it's still right for you.

Pinoy General Insurance Services is an independent insurance agency proudly serving Cerritos, Norwalk, Artesia, La Mirada, Bellflower, and surrounding Orange County communities. We represent multiple A-rated carriers and help families and businesses find the right insurance protection at competitive rates.