Why an annual review of your insurance is so important
It’s not January 1 yet, but I just wanted to share why I thought you should consider an annual review of your home insurance needs. And, it’s something you can do any time of the year, not just in January.
The benefits of an annual insurance review
Many homeowners purchase an insurance policy when they first move into their home, but then forget to review or re-evaluate if they have sufficient coverage.
Let’s say you insured your home for $200,000 when you first bought it, but in today’s dollars it would cost $300,000 to rebuild. That’s a $100,000 gap in coverage! Do you have the cash to rebuild in case something happens to your home?
A home renovation or upgrade is another reason you may want an insurance review. It can help ensure that your home and belongings are fully protected, and that your coverage is keeping up with your current needs
One way to evaluate your needs is to conduct a home inventory of all your possessions. There are plenty of tools and even smartphone apps such as Know Your Stuff® that can streamline the process.
Here are some ideas on what you might want to discuss during the review:
- A finished basement may not only increase the cost to rebuild your home, but it may also require additional coverage to protect items from water damage.
- Changes to your property such as Installing a new sprinkler system, a new pool or buying a riding mower may require a homeowner’s policy upgrade. Updating landscaping and purchasing new lawn equipment can be an expenditure that should prompt a coverage review.
- Your existing policy provides standard coverage for your home and belongings, but this coverage may not be sufficient for all your valuables and is frequently overlooked. For instance, you may need additional coverage for wedding rings, valuable golf clubs or other sports equipment, family heirlooms or artwork in your home.
- If you have a new home office that you run a business from, you might consider extended coverage to protect your business property.
- An annual insurance review can also be an important opportunity to ensure you are receiving all possible discounts on your homeowner’s policy. For example, you may qualify for a discount if you have installed a security system. Additional discounts may apply if you insure both your car and home under the same carrier.
Like home maintenance, an annual insurance review is something that can go a long way to protecting what is likely your biggest investment. Give me a call and let’s discuss what’s new around the house.