Homeowners insurance is for the what-ifs and hope-nots, but that doesn't mean it should be ignored. In fact, a home insurance review could save you money by ensuring that you are taking advantage of every discount. Insurance needs can also change over time and a small oversight could lead to a big gap in coverage. To make sure that your policy is a perfect fit, a home insurance review is a smart exercise. It is especially beneficial if you've acquired expensive sports equipment over the years, inherited family heirlooms, or remodeled your home recently.
Before digging in to our list and making the call to your insurance agent, it's a good idea to take inventory of your home and belongings. A photographic inventory of your possessions will help you determine where you might need extra coverage and can be a great resource if you have to make a claim. There are several free digital apps out there that can help you catalog your assets.
1.COVERAGE FOR THE FULL VALUE
It's important that your insurance policy provides adequate coverage to rebuild your home, taking into consideration current market cost. You'll also want to get credit for your brand new granite countertops, sunroom addition, or basement remodel in the unfortunate event of damage or loss. If it's been a while since the value has been assessed or if you've made improvements, your policy should reflect the changes so that you are covered up to the full value of the home.
2.DISCOUNTS FOR PREVENTION
Upgrades that help safeguard your home should be mentioned during your home insurance review. Most insurance companies offer discounts for hail-resistant roofing materials and security systems. Ask your insurance agent about additional discounts for fire alarms, carbon monoxide detectors, and gas and water sensors.
3. HOA ASSESSMENT COVERAGE
Referred to as œloss assessment coverage, this addition to your policy can save you from having to pay a hefty assessment if your Homeowners Association has low reserves, high deductibles, or inadequate coverage. Generally this type of insurance is intended for damage or injury liability and typically won't cover cosmetic upgrades. Be sure to ask which situations are included and excluded.
4. PROTECTION FOR YOUR VALUABLES
You'll want to make sure your favorite things have adequate coverage. Additional riders are available on most policies that will provide increased coverage for sports equipment, jewelry, artwork, heirlooms and antiques, instruments, electronics, and even landscaping and outdoor features such as gazebos, decks, or hot tubs. Your policy probably has some basic coverage for these items, but it may not cover the full replacement value. Check your current payout for these items against your inventory assessment to see if one of these insurance riders could benefit you.
5. HIDDEN DISCOUNTS
Many insurance companies offer deep discounts for bundling insurance coverages. But did you know that you can also get discounts if you are a non-smoker or a retiree? Other hidden discounts include good credit, gated community living, and living in close proximity to a fire department. Your premium could also be lowered if you just rewired the electrical in your home or replaced your systems, since the older versions are potential fire hazards.
Your largest investment deserves the best protection, that's why a home insurance review is a good idea on an annual basis. Use our tips to create a list of questions to discuss with your insurance provider and gain peace of mind knowing that your home coverage is up to date.
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