As you tidy up your home this spring, check and update your insurance policies. Changing life events such as the birth or adoption of a child, heirloom acquisitions, or home renovations may change your insurance requirements.
Likewise, your house’s market value can increase over time, but that’s different from what you must insure it for. That’s why annual reviews are so critical.
Whether you have a home or renters insurance policy, an annual review can help ensure that your most precious belongings are adequately covered. Insurance reviews evaluate coverage limits, deductibles, premiums, and any exclusions or endorsements on the policy. In addition, a review can identify potential gaps in coverage that you can close with supplemental or additional policies.
An insurance review should be a top priority for anyone who owns a home or rental property. It would be best if you also considered a review anytime your circumstances change, or you experience what is considered a “qualifying event” in insurance terms. They also include significant purchases or life milestones, such as completing renovations to your home. Similarly, changes in your professional life may warrant a review of your commercial or personal insurance policies. An insurance review can also be a great way to discover discounts you may be eligible for.
Streamline Your Policies
You may need to change your home insurance FT Myers FL policy coverage as your life changes. This is why reviewing your policies regularly is essential. Streamlining your insurance policies can help save you money by eliminating coverage that is no longer necessary and by helping to ensure that you have enough coverage in case of a disaster.
A volatile real estate market may mean that your home is worth more now than when you first purchased it, so ensure your homeowner’s insurance policy reflects this. Additionally, any renovations or additions to your property might make it necessary to increase your coverage.
Significant life events, like having a child, getting married or divorced, retiring, or aging, could also necessitate policy changes. Additionally, if you start running a business out of your home, adding an endorsement to your homeowner’s insurance or purchasing a separate commercial policy might be necessary.
Reduce Your Premium
Many insurance companies reward longtime customers by offering discounts for staying with them for several years. However, even if you’ve been with the same insurer for a while, it’s still worth shopping around. If you want to find the best protections and upgrades for your home while keeping your premium low, a reliable insurance agent can guide you through the process.
For example, a new roof might save you money by making your home more disaster-resistant, or installing a security system could lower the coverage required for your home. Likewise, assessing the value of high-value items, such as oriental rugs or grand pianos, may warrant reducing or canceling a floater (extra coverage for expensive possessions not covered by standard homeowners policies) to save on premium costs.
As you move through life, your needs change, and an accurate assessment of these changes is vital to ensure adequate coverage and competitive premiums. An annual policy review and a working relationship with your insurance agent are the keys to maintaining these objectives and safeguarding against potential risks and financial loss.
Avoid Gaps in Coverage
Regularly reviewing your policy can prevent underinsurance, a significant problem that can devastate you financially in an accident or disaster. For example, if you have not increased your home’s replacement cost value since the last policy update, your actual cash value may be lower than the amount paid in a claim.
A home insurance review also lets you identify coverage you no longer need, saving you money on premiums.
Several other situations warrant a policy review, such as significant family changes or professional milestones. An annual review can ensure that your insurance coverage is aligned with your changing needs and priorities.