When you purchased your home, you likely purchased home insurance. But how long has it been since you reviewed your homeowner's insurance policy? Occasionally, it's important to do a check up to ensure you have enough coverage if disaster strikes. Use our tips to conduct your home insurance check up.
Look at your home's structure + location
Homeowner's insurance, which includes dwelling and mobile homes, covers losses to your home and most possessions inside your home due to storms, fire, theft, and other events.
However, it's important to consider other disasters based on your location. For example, is your home in an area at risk of flooding? If so, you'll need additional coverage as most standard homeowner's insurance policies do not cover flood insurance.
Another important consideration is to confirm you have enough insurance to cover the cost of rebuilding your home. Calculate the costs of rebuilding and compare that against your coverage. If there is a gap, it may be time to up your protection.
Look at your home's possessions
How are you suppose to know how much insurance you need for your personal possessions if you have never taken inventory of your belongings? If you are like us, it would probably be difficult to recall each item and their worth. To start, follow this guide to take inventory of your assets.
Once you know the value of your items, determine if you need additional insurance. For example, standard homeowner's insurance policies typically will have limits on what is covered for certain items.
Look at liability coverage
Liability coverage is typically part of your homeowner's insurance policy that protects you in the event someone gets hurt on your property. Look at how much liability coverage your current policy offers and consider the costs of medical expenses or lawsuits that could arise if an accident happens on your property. If the amount seems low, consider upping the coverage.
As you can see, there are multiple factors to consider when doing a home insurance check up. Take the time to look at your current policy and if you think you are underinsured, contact our local agents to get a quote.