Homeowners Insurance Policy Annual Review Tips

As a responsible homeowner, you should know the importance of suitable homeowners insurance policy. However, your coverage needs can be dynamic and may change drastically in a short period of time.

Annual reviews can help maintain sufficient coverage and avoid being underinsured or paying for protection you may not need. Still, these processes can be complicated and require guidance from a qualified insurance professional, such as those at the Valera Agency.

Strategies When Reviewing Your Homeowners Insurance Policy

Homeowners insurance policies often have 12-month coverage periods, making renewal a logical time to revisit your options and needs. During the leadup to your reassessment and the process of exploring available policies, consider the following steps:

• Reassess property value. It’s generally advisable to retain sufficient coverage limits capable of funding a complete rebuild of your home. However, additions, renovations and economic conditions may impact these costs. Make sure you accurately recalculate these needs and secure appropriate insurance on an annual basis.

• Revisit inventory. Keeping a home inventory of your belongings is critical when determining suitable coverage limits. High-end electronics, jewelry, fine art and other valuables may easily exceed the capabilities of standard homeowners insurance policies, potentially necessitating additional protection, such as through scheduled property coverage.

• Shop around. You may have many options when it comes to homeowners insurance. Consider working with an independent agent to explore multiple carriers’ offerings, as this can help you secure personalized coverage at an ideal rate. Bundling your policy with other forms of insurance, such as auto coverage, can also garner lower premiums.

• Consider liabilities. Homeowners insurance often includes personal liability coverage, but you should ensure this aspect of your policy offers sufficient limits. If you’ve added an attractive nuisance (e.g., swimming pools or playground equipment), added a child or pet to your family, or started a home-based business, you’ll need to revisit this part of your insurance.

Get the Right Coverage

Contact the Valera Agency in Macungie, Pennsylvania, today to learn more about conducting an annual review of your homeowners coverage and ensure you maintain an optimal policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.