It’s time to review your homeowner’s policies and coverages. Mark it on your calendar, December 28 doesn’t sound like a bad day to get a pre-New Year insurance check-up on the books. Let’s go to your insurance policy Declarations Pages to get this started. What exactly are you looking for? Well, you’ll need to look at your coverages, limits, and the deductibles for each.
You’ll want to ask yourself a few things, before moving on: Have you made any upgrades to your home or property since the policies were written? Or in the last year? Do you need to update your policies to cover assets that have been more recently acquired or renovated, like a new pool or shed? Are there any additional assets that you need to secure, like an RV or boat? Also, review that you have the right kind of insurance and enough coverage. Do you need to extend your coverage because when initially purchasing your policy your home was valued at $350,000 and now it’s valued at $425,000? Is your home’s full value covered by your policy? Should you opt for an “actual cash value” or “replacement cost” policy for your covered items? Actual cash value pays you the current value of a potentially damaged item, a replacement policy gives you the amount needed to fully replace an item. Deciding between both is at your discretion. Another item you need to look at is your deductible, while having a higher deductible will keep your premium low it could also leave you with the bulk of potentially costly bills when a covered peril occurs. Furthermore, how’s your liability situation looking? Most insurance policies provide a minimum of $100,000 worth of liability insurance, but do you need more? Doing a little math could help you decide if you need to extend that coverage to $300,000 or $500,000, as those are the recommended amounts of coverage. Flood insurance is another big deal, especially in certain parts of Florida, where flooding is a potential issue. Most homeowner policies typically don’t cover flooding or all kinds of flooding. We know, flooding is flooding, no matter what kind. Yes, but also no. Flooding from water that has been on the ground, or water from a pond or a lake is different from one another and also different from stormwater and a sewer backing up. You might also be in a high-risk, or low-risk area for flooding, both carry different price tags.