Some homeowners purchase a homeowners insurance policy and never look at it again. This can be a costly mistake. Performing an annual insurance review is a great way to invest in your future, especially if your future includes damage to your home. Having the right coverage is important to overcome these disasters. Here are four reasons why an annual insurance review makes sense.
Finding Coverage Gaps
Coverage gaps are simply areas where you do not have enough insurance to cover your property or its contents. Gaps in your coverage will make rebuilding after a disaster difficult if not impossible.
Why do gaps exist? Here are a few possible reasons:
- The price for restoration materials has increased: When this happens, you need to increase your coverage limits to cover the costs for rebuilding.
- You have added upgrades and/or valuables: After moving into your home, you may have added upgrades like high-end appliances, updated fixtures, more expensive furniture, or electronics. You may have also renovated your home, finished out a basement, added a new room, or turned a garage into a study. All of these changes can affect your policy limits.
Insurance companies often offer discounts for different life status’ and situations. For instance, you may qualify for a discount due to:
- Improved credit score
- Paying your premium annually rather than monthly
- Automatic payments
- Bundling policies
- Claims-free credit
- Non-smoker credit
- Smoke alarms and fire extinguishers
- Security alarm system registered with your city or county
- Fire sprinkler system
- Central alarm system
Be sure to ask your insurance agent which discounts apply to you during your annual insurance review.
Conducting an annual insurance review can also remind you of compliance issues needed to keep your policy in force. If you do not update coverage to reflect changes, your settlement can be denied. These include:
- Operating a business from your home
- Renting your home
- Adding a fireplace or woodstove
- And more
Peace of Mind
For many homeowners, an annual insurance review is simply a way to get peace of mind. Making sure that all your ducks are in a row can help you feel comfortable that if a disaster strikes, you will be prepared for the worst.
Questions to Ask During Your Annual Insurance Review
To guide you through your annual insurance review, here are some questions to consider.
- Does your current coverage allow you to rebuild your property?
- Does your current coverage include things such as landscaping, outdoor furniture, and outdoor appliances?
- Are there insurance discounts you qualify for?
- Have you done work to make your property safer such as a security system, generator, fence around a pool, ?
- Is your property exposed to natural disasters not covered by a standard homeowners policy such as flooding or earthquake?
- Has homeownership changed?
- Have you started a home business?
- If you already had a business, has it grown in terms of revenue, supplies, equipment, inventory, and/or employees?
- Do you have expensive jewelry, artwork, or collectibles that need a rider?
- Have you added personal property to your home such as furniture, appliances, or electronics?
- Are there new home renovations?
- Have you added any exterior property such as a shed, gazebo, or pool?
Contact Aftermath Adjusters & Consulting before you meet with your insurance agent for your annual insurance review. We can help you estimate the value of new additions to your home, the cost of rebuilding, and help you see gaps in your coverage. Give us a call today.