It has been centuries since laws introduced the basis for insurance of all types. Since then, insurance has changed as society’s needs have changed. Chances are your needs have changed since you initially purchased your homeowners policy. For example, you may have acquired more expensive possessions that require special coverage, or you may have made some home improvements that have increased your home’s value. Here are some tips on how to keep your insurance up to speed with changes in your home and possessions.
Be familiar with your homeowners policy. Read your policy’s provisions, limits, and exclusions. Insurance professionals can answer any questions and analyze all potential homeowner risks.
Have your home appraised regularly. If you had to rebuild your home today due to a disaster, would you have enough insurance to cover the rebuilding costs? Be sure to get a regular appraisal of your home’s value so you can adjust your insurance coverage for appreciation, rising construction costs, and home improvements.
Check community building codes. Sometimes, a damaged home can’t be reconstructed exactly as it was without violating current building codes. For instance, the home may need electrical rewiring or special windows due to updated safety or energy codes. Knowing about these potential expenses in advance can give you time to obtain extra insurance protection if necessary.
Take a home inventory. You can estimate home much insurance you need by documenting your possessions, both on videotape and on paper (or on your personal computer). Update this inventory yearly to include new possessions. Be sure sure to store copies in a safe place outside your home.
Evaluate your liability exposure. Does your home owners policy offer enough liability coverage for your needs? A personal umbrella policy may be a worthwhile consideration.
A homeowners insurance policy can help protect you and your family suffering from a devastating financial loss. It offers you protection against expenses you otherwise might not be able to afford. Keep your policy current to cover home improvements or the acquisition of high-value possessions. Failure to maintain proper coverage may result in your sharing a partial loss as a penalty.
Although insurance originated over 3,000 years ago, it has evolved throughout the centuries to keep pace with society’s needs. Regularly review your insurance coverage to help ensure it meets your needs.