The Benefits of an Annual Insurance Review - January 2023
Many homeowners purchase an insurance policy when they first move in, but they may not understand the importance of periodically reviewing it or reassessing their needs. It's an oversight that can ultimately lead to a gap in their coverage.
For instance, you may have insured your home for $400,000 when you first bought it. Years later, your home may cost $600,000 to rebuild. That's a significant gap in coverage—which could leave you without the proper resources to rebuild in the event of a loss.
A home renovation or upgrade is another reason you may want an insurance review. It can help ensure that your home and belongings are fully protected, and that your coverage is keeping up with your current needs. Everything from new furniture to a kitchen upgrade can affect the value of your family's home and may even qualify you for additional discounts on your insurance policy.
Tips for talking with your insurance provider
Despite what you might think, though, an insurance review doesn't have to be an involved, time-consuming endeavor. A single conversation or a visit with your insurance agent can help make sure that you're knowledgeable about your coverage and comfortable that your limits are meeting your current needs.
Here are some ideas on what you might want to discuss:
"Does my policy provide enough coverage to rebuild my home today?"
Many homeowners are surprised to learn that their policy is outdated and does not provide sufficient coverage to rebuild their existing home. Changes in construction costs (they can vary from year to year), upgrades to a kitchen or bathroom, new kitchen appliances, or updates to a basement can all affect the cost to repair or rebuild your home.
"Does my policy provide enough coverage for landscaping or outdoor appliances?"
Installing a new sprinkler system, a larger storage shed, a new pool or hot tub, or buying a substantial backyard grill are outdoor changes that may require a homeowner's policy upgrade.
"Do I need extended coverage for valuables?"
Your existing policy provides standard coverage for your home and belongings, but this coverage may not be sufficient for all your valuables and is frequently overlooked. For instance, you may need additional coverage for wedding rings, valuable golf clubs or other sports equipment, family heirlooms and antiques, musical instruments, or artwork in your home.
"Do I qualify for discounts?"
An annual insurance review can also be an important opportunity to ensure you are receiving all possible discounts on your homeowners policy. For example, you may qualify for a discount if you have installed a security system or a smoke alarm. Additional discounts may apply if you insure both your car and home through the same provider, if you don't have any claims, or if no one in your household is a smoker.
“What liability protection do I have?”
One of the most critical coverages to review is your Liability Protection. This can help protect you from financial loss if you’re legally obligated to pay for another person’s injuries, or damage to another person’s property. You may find you need increased coverage on your policy or decide to buy a Personal Umbrella Policy (PUP).
Like home maintenance, periodically reviewing your coverage is something that can go a long way to protecting what is likely your biggest investment. Your insurance provider can walk you through the details of your policy and suggest updates to your protection based on updates in your life.
Get trusted advice from an agent, review and adjust your policy if needed, and then enjoy the peace of mind you’ll have from knowing you’re protected the way you want to be.
We’re happy to provide a complimentary policy review. Let us know if we can be of service.
BY: Brad and Elaine Denslow - Allstate | The Denslow Agency