Homeowners insurance policies are documents that need to be reviewed annually and updated periodically.
There are a variety of reasons for this review, and the only way to ensure you have proper coverage is to speak with your insurance agent.
The annual renewal date is the best time for a regular, systematic overview.
Many insurance agents contact their policyholders each year at that time to discuss any changes that might affect their coverage needs.
But if you have a major change to the value of your home, do not wait until your renewal date to make the adjustments.
Whether your agent calls you or not, take it upon yourself to ensure that you have proper coverage.
(If your agent does not contact you at least once every two years, you might want to consider getting quotes from one who does.
) Unless your agent is a friend, it is highly unlikely she will know that you have a need for increased coverage.
There are a few reasons to have reviews of your insurance policy.
First, you're risking not having complete coverage if you have made any major changes that affect the value of the house.
If you have a disaster, and find you're under-insured, that is not the time to disagree about who was responsible for proper coverage.
The responsibility always falls on the policyholder.
So, what are the major changes you should report to your insurance agent? EXTERIOR/STRUCTURE COVERAGE The square footage of your home is what determines the coverage needed, so if you have added on to your house, it is imperative to let your agent know.
Additionally, if you converted an attic to living space or finished a basement, these are other times to inform your agent of the need for additional coverage.
For example, let's look at a ranch-style home of 1800 square feet, with a full basement.
Once the basement is completely finished into living area, you have just doubled the size of your house to 3600 square feet! Obviously, additional coverage will be necessary.
Check with your agent to determine if you need any changes to your policy to cover any new out buildings added to your property.
These could include a pole barn, mini barn, pool house or garage.
Other exterior changes that should be discussed with your insurance agent are fences, in-ground or above-ground swimming pools.
Remodeling does not usually require additional coverage, such as new appliances, new carpet, etc.
However, if you do extensive redesign, it's best to verify you're covered sufficiently.
Besides the possible need to increase your coverage, there are also updates that might help you qualify for credits, thus reducing your premium amount.
These items, among others, are a new roof, furnace, electrical and plumbing.
If you've added a sprinkler system, smoke alarms or security alarms, these also might qualify you for a discount.
Again, if you have any questions, don't hesitate to call your agent.
You are the customer and they are here to serve you! CONTENTS INSURANCE Special purchases of high dollar items will most likely require a rider for proper coverage.
Items such as jewelry, musical instruments, collectibles, antiques, firearms, etc.
, face limits on your policy.
Scheduling these items is very inexpensive for the value you're insuring.
Having a personal property inventory will be extremely helpful if you need to file a claim.
Even though you have proper insurance, you will still need to provide a list of each item you want reimbursed, when you purchased it and what you paid for it.
This is a daunting task, especially when under the emotional stress of having just endured a loss.
Consider it insurance for maximizing your claim.
I'd like to reiterate that it's best to call your agent at the time the changes are made or items purchased.
However, at the very least, every year, when it's time to pay your homeowners premium, consider what changes you've made.
If in doubt about the need for additional coverage or possibly qualifying for credits or discounts, give your agent a call.