Give Your Home Insurance an Annual Checkup
Begin by reviewing the dwelling coverage limit, deductible, personal property coverage, liability protection, and additional living expense coverage. The goal is not simply to find the lowest premium. It is to u...
Home insurance is easy to ignore when the policy renews automatically, but a home and the belongings inside it can change considerably in a year.
Begin by reviewing the dwelling coverage limit, deductible, personal property coverage, liability protection, and additional living expense coverage. The goal is not simply to find the lowest premium. It is to understand what the policy would and would not provide after a covered loss.
Think about changes made since the last review. A renovation, finished basement, new roof, home office, expensive appliance, jewelry purchase, or other major addition may affect the amount or type of coverage needed. Share important updates with a licensed insurance professional rather than assuming they are automatically included.
This is also a good time to create or update a home inventory. Walk through each room and take clear photos or video of furniture, electronics, appliances, tools, and other valuable belongings. Save receipts when available and keep a copy of the inventory somewhere that would remain accessible if the home were damaged.
Ask about exclusions and limitations. Standard policies may not cover every type of damage, and separate protection may be available for risks such as flooding or earthquakes depending on location and need.
Homeowners whose insurance is paid through an escrow account should also pay attention to premium changes. A higher insurance bill can contribute to a future change in the monthly mortgage payment after an escrow review.
Insurance needs vary, so use this review as a list of questions rather than a reason to make changes without advice. A short conversation now can make the policy easier to understand before it is ever needed.