5 Things to Look for When Reviewing Your Home Insurance Policy
Owning a home has its rewards. For starters, home values increase so your investment builds equity. Second, your home becomes your haven — for you and for your family. However, there are times when things happen. No one wants to think about disasters or other horrid circumstances, but it’s best to prepare. It’s always a good idea to review your homeowners policy every so often. Likewise, if you are purchasing a new home, here are some things to think about when shopping for coverage:
Review and determine if your structural coverage is enough to rebuild your home from scratch. If it’s not, increase the replacement cost. Review the maximum amount limits to be sure. Usually, dwelling coverage just covers your structure. However, if you live in a flood plain, you may also want to include the land value too.
Floods, Earthquakes, Mudslides, and Hurricanes
Some policies have exclusions regarding risk categories. Typically disasters caused by floods, earthquakes, wildfires, and hurricanes are insured by additional coverage. Flood zones change periodically so it’s a good idea to check current flood maps. You also need to know that your lender may require additional insurance — specifically if the Federal Emergency Management Agency (FEMA) says that you live in a high-risk area such as a flood plain.
Over the years, you acquire items of certain value. It’s a good idea to do an inventory spreadsheet by room with replacement values and update it every year. For any jewelry, heirloom pieces, or artwork, have an appraisal on hand. Also know that you are most likely going to have to purchase additional rider coverage for these items.
Dog Bites and Broken Legs
It’s sad but true, we live in an age where homeowners get sued for visitors falling on your property or Fido bites a solicitor. Purchase additional liability insurance to protect against these circumstances. Confirm that it’s enough to handle medical, legal fees, pain and suffering, wages, and death benefits.
Check Your Discounts
If your new home has a security system or if you install a new one, call your agent. Most policies give discounts for security features. Furthermore, if you have been with the same company without a claim for several years, you may also qualify for a lower rate.
As always, it’s a good idea to double check with your agent if you have specific questions. Make sure to have it in writing.
If you enjoyed this post you might also want to read, “Home Equity: Knowing Where You Stand”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.