REVIEWING YOUR HOMEOWNERS INSURANCE

THINGS TO DO WHEN REVIEWING YOUR HOMEOWNERS INSURANCE

Home maintenance and safety are not a one-time thing. Homeowners need to make a continuous effort to prevent any issues.

Aside from taking security measures, having a homeowner’s insurance policy in California can protect you against financial turmoil caused by certain unexpected events. These include accidents or natural disasters that leave damage to your home.

Conducting a Review

When talking about updates and improvements, homeowners should not only focus on the aesthetic of their property.

It is important to review the things that protect your home and you as a homeowner as well. Thus, it is crucial to include an insurance review on your annual to-do list.

So, what does this mean?

Simply put, an insurance review means the policyholder goes over their policy to check if there are areas that need an upgrade. Many also do it to see if some features no longer apply to the situation.

Reasons to Review Your Policy

Generally, people have different reasons why they would want to review their homeowner’s insurance policy. Here are some of the most common:

1. The market value of the property has increased.
2. There are new personal belongings, while some of the old ones are already gone or damaged.
3. The homeowner made some home improvements like renovations and installment of a home security system.
4. The homeowner started a home business.
5. The property has extra features, such as a trampoline, hot tub, or swimming pool.
6. Personal assets grew, and the policyholder wants more protection.
7. The homeowner added a new pet.
8. The homeowner plans to rent out the place.
9. The policyholder wants to check if they qualify for any discounts.

What To Do

Some people fail to realize the importance of reviewing their homeowner’s insurance regularly. But, it is never too late to start this habit. Here are the things one should do when reviewing their policy:

1. Consider the coverage you will need. It is best not to base the policy coverage level on the appraised value of the property. Instead, consider multiple factors that may affect your needs. For instance, you should consider the most recent per-square-foot replacement costs in the location. Think about the weather conditions in your area. What natural disasters often wreak havoc?
2. Find out what is not covered. Never assume that your policy is enough to cover all perils without reviewing it. This way, you will not be surprised if the insurance carrier denies your claim due to lack of coverage.
3. Ask about the deductible. Insurers may adjust deductibles. You may also increase it to get lower premium rates. Make sure you understand how it works before renewing your policy.
4. Compare. Premium rates are not always the same. Sometimes, there are changes due to various risks. It is best to compare the previous policy inclusions, coverage, and rates to the current one. You should also figure out what made your risk profile change.

Contact us

If you want help reviewing your insurance, work with a reliable agency for expert advice. Additionally, you can get help in getting quotes for a homeowner’s insurance policy. Contact us at Panorama to learn more.