Homeowners Insurance protects your home's structure and belongings by helping pay for costly repairs or liability after a natural disaster, break-in, or accident. Without adequate coverage you could face a large bill, so follow these steps to make sure your policy matches your needs.
Determine the Home's Value
When you first bought your policy, you told the agent how much your home was worth. That figure may have changed. Use a recent tax assessment and hire an independent contractor to get a current, accurate value for reconstruction or replacement.
Switch to Replacement Cost
Actual cash value calculates an item's worth as the original purchase price minus depreciation. Replacement cost pays to replace the item at today's prices. Consider updating your policy to replacement cost to improve coverage for a modest increase in premium.
Inventory Your Home's Contents
Over time, household contents usually increase in number and value. Update your inventory list to include valuable artwork, jewelry, electronics, firearms, and collectibles.
Take photos of high-value items, keep purchase receipts when possible, and record serial numbers and written descriptions. If one of your valuables is especially expensive, consider High Value Homeowners Scheduled Personal Property to schedule and insure that item specifically.
Consider an Umbrella Policy
If you add features such as a pool or a finished addition, liability exposure can increase. An umbrella policy provides additional liability coverage that helps protect your assets beyond the limits of your primary policy.
Check Into Flood Insurance
Standard homeowner policies generally do not cover flood damage. If you live in a flood plain or there is any chance of flooding, purchase flood insurance to avoid gaps in protection.
Insure Your Dog
Certain dog breeds are excluded or carry higher liability risk under many policies. Tell your agent if you adopt or buy a breed that has breed-specific restrictions so you understand how the policy treats potential bite claims.
Check Your Condo Coverage
If you live in a condominium, review the association's master policy to understand what parts of the building are covered. Typically you are responsible for insuring your unit's contents and any interior improvements you make.
Do an Annual Review
Review your homeowner policy at least once a year to confirm coverage limits and endorsements still match your situation, especially after significant purchases, renovations, or life changes.
Home insurance protects your home, belongings, and other assets. Make sure you have enough coverage when you talk to your agent today.
Frequently Asked Questions
Do I need to update my coverage after a renovation?
Yes. Renovations can increase your home's replacement cost and may require higher coverage limits or specific endorsements.
What is replacement cost vs. actual cash value?
Replacement cost pays to replace damaged items at current prices, while actual cash value pays the depreciated value of the item.
Does my standard policy cover floods?
No. Flood damage is usually excluded from standard policies and requires a separate flood insurance policy.
Should I schedule a very expensive item?
Yes. Scheduling or endorsing high-value items ensures they are fully covered rather than subject to sublimits in the main policy.