Reviewing your home insurance policy from time to time will make sure that the policy is up to date and current if and when it is ever needed. If it has been a few years since you reviewed your policy, take a look at it and see if it still covers everything that it should. After all, if someone asked you a few years ago what the best restaurant in town was, your answer would probably be different than it is now. If someone asked you what your favorite TV show was two years ago, it may be different than now. Things change with time, and your insurance coverage is one of the things that needs to change, as your needs change.
What is the value of your home right now? Has it been appraised lately? Could the value have gone up significantly while the amount of insurance coverage you have has remained static? Real estate often goes up in value and if you’ve made improvements to the home that adds even more value. Make sure you actually have enough coverage to repair or replace the home should disaster strike.
Also, when you review our home owner’s insurance policy make sure that you have enough liability coverage. Our society has become very litigious. What would happen if a door to door missionary came to your home to convert you to another church and tripped on the sidewalk as she was leaving? It might sound funny now, but if someone sues you for a million dollars and your home owner’s policy only covers liability up to $100,000 then you’ll wish you’d reviewed the policy and updated it.
How to go about reviewing your insurance policy? First make an appointment with your agent. Get an honest opinion from him as to what type of coverage you need and what your current policy covers. Then check on any houses in your neighborhood that have recently sold. Does it look as though homes in your area have gone up in value? If so, it might be time to invest in an appraisal. Often times appraisers will give you a discount if you are not in a hurry and just want an informal opinion rather than a written report. This opinion will give you a good idea of what type of damage coverage you should have. Then take a cold hard look at the liability portion of your coverage and ask yourself if you really think it is enough. If not, your best choice might be an umbrella policy. Ask your agent about umbrella policies. You should be able to get an umbrella policy covering up to one million dollars in liability for between $200 and $300 a year, which might seem like a lot, but if you ever have to use it, it will seem like a bargain. After doing all your homework sit down with your agent one again and review the policy thoroughly asking all the questions that come to mind. Doing this will assure you that you have enough insurance and give you peace of mind.