Reviewing Insurance Coverage in the New Year
New Year 2017 Homeowners Insurance
The New Year is just around the corner, which makes it a great time to review your insurance policies. Your insurance coverage should be updated and reevaluated on a yearly basis and the start of a brand-new year is a great time to complete this chore.
There are a number of different circumstances that can lead to changing insurance needs or coverage levels for your homeowners insurance. Here are just a few things to think about while you review your insurance needs for the coming year:
Take a New Inventory: A lot can change over a year. If you purchased any big-ticket items be sure to add them to your home inventory. New TVs, stereos, or any new art or expensive jewelry should all be documented.
A complete home inventory should include serial numbers, copies of receipts and photos if possible. There are a number of apps available that make taking a home inventory easy and allow you to store the data in the cloud.
Helpful Article: Best Home Inventory Apps on the Market
Home Upgrades: If you renovated your home this year you may need to update your homeowners insurance. Putting an addition on your home, updating your kitchen or finishing a basement are just a few examples of improvements that can dramatically increase the value of your house, as well as the cost to rebuild it.
If the cost to rebuild your home has gone up over the past year you should increase your coverage levels. Contact your insurance agent to check on the proper coverage levels for you home and update your policy if necessary. This is also a great time to shop your coverage to see if you can find a better deal.
Helpful Articles:
- Some Home Improvement Projects That Cannot Increase The Resale Value Of Your Home
- Seven Most Dangerous DIY Home Renovations
Replacement or Actual Cash Value: Check your policy to see if it is actual cash value or replacement value as it is important to know the difference. Replacement value will cover the cost to replace your belongings with brand new ones, despite the age of your current property. Actual cash value on the other hand will take deprecation into account when valuing your property, which means that your 20-year TV is worth next to nothing.
The cost of replacement value is usually not dramatically more than actual cash value and is well worth the price if you can afford it. Check your current policy and upgrade to replacement value if possible.
Discounts: Insurers offer a wide range of home insurance discounts and it’s possible that you may qualify for new discounts. Adding a security system to your house, putting on a new roof or adding storm shutters can all result in a discount
Ask your agent to verify that you are getting all of the discounts that you are qualified to receive. Again, this may be a good time to shop your coverage and see if another insurance company will offer more discounts or a better price.
New People in the House: If you moved your aging parents into the house or have taken in any other new residents you should let your insurance company know. All full-time residents of the home should be on your policy to ensure they are covered in the event there is an accident or injury.
Fun Time: Trampolines, pools and hot tubs are just a few examples of fun time toys that can cause injuries and push up the cost of your homeowners insurance. If you added any of these features to your home, let you insurance company know and verify you are fully covered from the risk they present.
Flood Insurance: Have local flood maps changed? If you find your home is suddenly in the middle of a flood plain you will need to add a flood insurance policy. A standard homeowners insurance policy does not offer protection from flood damage so if your home is at risk of flooding a flood policy is a necessity.
After your policy review, if you find that your policy is lacking, you need additional coverage or just want to shop around for a better deal, we can help. We can easily help you shop and compare up to 12 different home insurance premiums and apply all the available discounts and credits.
Get started today, contact us now to quickly get home insurance quotes online.