It’s time for your annual homeowner’s insurance checkup

An annual insurance review can save you money and ensure you’re adequately covered in the event of a catastrophe. Here are the basics of this essential once-yearly checkup:

Double-check your dwelling limits. Check with us to see if you are adequately covered in the event of a disaster. The goal is to be able to have enough coverage so that your home could be rebuilt with the same square footage and amenities. Remember, your agent will calculate the actual cost of rebuilding your home with the current price of building materials, which is different from your property’s current market value or appraised value. The cost of rebuilding doesn’t include the cost of your land.

Make sure you’re covered for all disasters. Standard homeowner’s insurance policies do not cover damage caused by flooding and earthquakes. You’ll need to purchase separate coverage if you’re at risk for either one. Know that even if your neighborhood is declared a federal disaster area after a flood or earthquake, the government isn’t likely to cover your loss.

Check your deductibles. Generally, the higher your deductible, the lower your premium. If you can afford a higher deductible, you could save a lot of money each year. Just make sure to put the money aside in a savings account so you can pay it in the event of a claim.

Take a home inventory. Walk through your home and record your valuables. Film them if possible, and list model numbers and keep any receipts for major purchases. Considering storing a copy of your home inventory outside the home in a safe place. Check your coverage limits for the different categories of valuables. If you have a lot of expensive jewelry, for example, you may need extra coverage. Do you have other buildings on the property or expensive tools? This is the time to make sure they are covered.

Ask about liability. Do you know how much liability you have under your homeowner’s insurance policy?¬†Homeowners can be held liable for injuries which occur on their property. Your liability coverage also can cover you in certain situations even when you’re not at home. If you have a lot of assets, you may want to have more liability coverage.

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