Updating Your Home Insurance for 2012

Updating Your Home Insurance for 2012 – Performing an insurance review annually is an important way to ensure that your policies are always up-to-date and that they represent your current needs, not the needs you had in the past. When deciding what to update in your home insurance policy, consider the following:
1. Are you now in a flood zone? Cities and counties reassess their flood zones frequently, so while you might not have needed flood insurance when you bought your home, the case may be different now.
2. Have construction costs increased? Your property insurance limit is based on the cost of rebuilding your home should it be totaled during a covered event. As construction costs increase, so should your limit.
3. Did you invest in any new furniture? If you upgraded your sofa, beds, tables or any other furniture, then your contents limits might be too low to offer you the replacement or actual cash value benefits you need.
4. Have you upgraded any of your electronics? Your contents coverage can only cover the actual cost or replacement value of your electronics and downloaded purchases if your policy’s limits are high enough to provide that coverage.
5. Did you buy any jewelry, antiques or other collectibles? You may need to have the value of certain antiques, art, jewelry and collectables assessed and additional endorsements added to your policy to ensure proper coverage.
6. Are your liability limits reasonable? Your agent can help you determine what the average liability claims are in your area. That information may introduce additional liability coverage needs, as might the addition of a pool, tree house or even certain breeds of dog in your household. An umbrella policy can also add additional coverage and will extend to auto liabilities.
7. Do you have coverage for common perils in your state? From windstorms to sink holes, fires to floods, certain areas are prone to specific perils that may be excluded in the average home insurance policy. Make sure your home insurance policy, or flood policy, has adequate protection for them.
8. How do your deductibles compare to your savings? A deductible that seems affordable one year could be completely intimidating the next. If you’ve had to tap into your savings for other needs then it may be time to reconsider your deductible and choose a new one that you can more easily afford.
Remember, insurance is a dynamic product meant to be designed for the life you live. A life that never stops changing and evolving, just as your home insurance policy should. Give us a call to update your home insurance policy today.