While working as an insurance agent, I have found that most of my clients tend to overlook their homeowners insurance. Unlike your auto insurance, where you “use” it more frequently (i.e auto claims, roadside assistance, replacing cars), your homeowners insurance tends to be left in the corner, why is that? My theory is; most people overlook it because they escrow their insurance therefore it’s not a bill they see directly every month. Out of sight, out of mind - not exactly! While the likelihood of a total loss to your home is rare, it is important to be prepared for the worst case scenario.
When is the last time you reviewed your homeowners policy? If your immediate answer was “never” then you should call your agent right now and schedule a policy review, but for those of you who answered “at my renewal”, you’re doing great! I would highly advise that you review your homeowners insurance at every renewal date, which for most of us, is once a year. In a full year, you could and most likely have made adjustments to your home. No matter the size of the improvement you did, be sure to mention it at your next renewal; it could affect the amount of coverage you need on your homeowners policy. Maybe you added a shed or a detached garage? Your agent would need to increase the amount of coverage on your additional structures limit. How about you installed a pool? Your liability limit would certainly need to be evaluated and possibly raised. It is your responsibility as the insured to provide your agent with the proper information so they can insure you accordingly.
Whether you have or haven’t made improvements to your home, I would still advise that you review your homeowners policy with your local agent. Insurance practices are forever evolving and it is crucial that you and your policy keep up with the changes - general rules and regulations regarding the billing or endorsement process can be updated more frequently than you would think. While your agent should inform you of these changes, it doesn’t hurt to beat them to the punch and to contact them first!
As an insurance agent, I cannot highlight the importance enough to reviewing your coverage. At a minimum, make time to review your homeowners policy at your renewal; It is for you and your family’s benefit. Freeing up a couple minutes to discuss your coverage with your agent now could save you from losing everything in the future - don’t forget to give them a call!