Five Steps Ensuring Your Home Is Properly Insured

The only thing constant in life is change. Marriage, children, a new house, a new job, and even retirement are all common life changes that can impact your insurance coverage and needs. That renters insurance policy you had in college will no longer be applicable when you buy your first home, nor will your first homeowners policy be adequate to cover you in a second, larger home. To make sure you have not outgrown your insurance coverage and that it suits your current needs, it’s best to review your policies annually with your agent. Here are five tips to help you get started:

1. HAVE YOU ACQUIRED ANY NEW VALUABLES?

Your standard homeowners policy only provides small sub-limits for valuables such as jewelry, art, and electronics. The policy does not provide replacement cost on your valuables, but some insurance carriers will allow you to schedule your items for the appraised value.Otherwise, the insurance company will only pay their maximum set limit, which is usually considerably less.

2. DID YOUR TEENAGER START DRIVING OR HAVE YOU BECOME A NEW PARENT?

Many people don’t realize that when they become parents, they are responsible for their child’s negligence. It’s a good idea, therefore, to obtain an umbrella policy that provides excess liability coverage beyond your standard homeowners and auto policies. An umbrella policy provides excess liability limits starting at $1 million. Pricing typically starts at about $150 a year.

3. HAVE YOU DONE EXTENSIVE RENOVATIONS TO YOUR HOME?

Renovating your home is common these days, but major upgrades may leave you underinsured if you have not updated your policy in accordance with your home’s improvements. It is advisable to contact your agent when you complete renovations to discuss increasing your limits.

4. HAVE YOU PURCHASED ANY EXPENSIVE NEW “TOYS”?

We are not talking about inexpensive trinkets for the kids but rather lavish gifts you may buy for yourself, such as a boat or motorcycle. Having these types of assets under ownership creates many new types of exposures that must be covered by insurance.

5. HAVE YOU PURCHASED A MORE EXPENSIVE HOME THAN YOUR ORIGINAL PURCHASE?

Homes with a replacement value of $1 million or higher may need to be insured with private specialty carriers as opposed to the standard carriers that serve the mass market. Without the careful scrutiny of an specialist, you may find yourself overinsured against minor threats and underinsured against major ones.

Contact a Personal Lines Specialist

Corina can be reached via email at chill@atlasinsurance.com or by phone at 808-533-8613