As each new year approaches, you should conduct a homeowners insurance review to refresh your memory on everything your coverage protects. You never know when you may need to file a claim due to a disaster like a severe storm, so it's a good idea to understand your coverage before the damage occurs. Here are essential points to remember about your annual insurance review.
Benefits of Conducting an Annual Review
Most homeowners will take their time reading their standard homeowners policy when they first purchase the policy or face a specific problem. While standard insurance plans will cover most basic things, there are often differences in coverage limits and other subtle details that can vary between policies and insurers. No one should assume that a standard plan automatically covers any particular disaster. A careful reading of your particular policy is crucial to make sure you know everything that is and isn't covered under your plan.
Conducting an insurance review once per year will keep you updated on your policies, which you can evaluate to make sure they still match your needs. People's needs usually change over time, so this year's coverage might not be the same as the coverage you need a year from now. Your annual insurance review will allow you to decide if you need to add or subtract coverage.
Part of the review should involve taking inventory of all your valuable belongings. Make sure each item is covered by your standard plan or additional coverage. You can use various smartphone apps such as Digital Locker to organize your home inventory list and share it with your agent.
Talk with an Experienced Insurance Agent
After creating your inventory list, you should develop an insurance policy review checklist. Talking with your insurance agent will help complete this checklist. The following are some of the topics you should discuss to clarify your coverage.
1.Coverage for Rebuilding Your Home
It's common for a homeowners insurance policy to become outdated without homeowners realizing it. Coverage needs may change to account for the rising costs of construction materials and labor. That means if you never adjust your policy, you won't be able to get full coverage based on current rising construction costs.
2.How a New Basement Affects Your Policy
You may need to pay additional home rebuilding costs to finish your basement. To protect against water damage in the event that your basement floods, you should discuss extended coverage for items stored in the basement.
3.Coverage for Adding Outdoor Items
When you add new landscaping, such as a pool or sprinkler system, to your backyard, you'll also need to revisit your insurance coverage to make sure these assets are covered in case of a natural disaster.
4.What Type of Extended Coverage is Necessary?
Your standard homeowners policy will protect many of your personal belongings from damage or theft, but there can still be coverage gaps. Find out from your agent if certain jewelry like a wedding ring, antiques, artwork, or rarities are covered. If not, you can add coverage to ensure all your valuables are covered.
5.Eligibility for Discounts
When you review your insurance coverage with your agent, you can gain insights on opportunities for discounts on various types of insurance coverage. Usually, the more you invest in lowering risk, the better chance you have at reducing insurance costs. For instance, if you invest in a security system, it can mean paying less insurance because you'll reduce the risk of theft.
Similar to having your roof inspected every year, an annual review of your homeowners insurance will help you determine future budgets and ensure you are adequately protected. You will also gain peace of mind knowing everything you care about is covered.
It's advantageous to review your different types of homeowners coverage every year to stay up to date with current economic conditions and your own needs. You may need to add or subtract coverage elements each year. To secure reliable coverage, contact the experts at
Little & Sons Insurance Services. Serving Banning and the surrounding cities in California, we are ready to assist you with all your insurance needs.
