We’re all guilty of it. We get our homeowners insurance policy, pay the monthly premium, and then forget about it. However, this may not be the best strategy, as it’s usually not very pleasant to find out that you’re not properly insured until a crisis happens.
It is important, regardless of where you live in the country, to take the time to review your homeowner’s insurance policy on a yearly basis. It doesn’t take long, and it could save you big in the event of a catastrophe.
Here’s what you’ll need to do:
- Make sure you have the coverage needed. It is important to review your policy each year to ensure that your home and your possessions are adequately covered in the event of a disaster. In other words, make sure your policy covers you in the event of a total loss.
- Pay close attention to policy limits and exclusions. Not all homeowner’s insurance policies are created equal, so check your policy to make sure that the exclusions and policy limits of your policy are reasonable and that your deductible is manageable.
- Don’t assume your homeowner’s insurance policy covers all natural disasters. Ask your homeowners insurance company about natural disasters, such as floods and hurricanes. If your policy doesn’t cover these disasters (most don’t), take out another policy that will.
- Update your home’s inventory. It is always best to have an updated inventory of the contents of your home in case you need to file a claim with your insurance company. It is often convenient to videotape the rooms of your home and narrate the contents, including their dates of purchase and their purchase price. Then, keep the video somewhere safe; preferably in a fireproof safe or safe deposit box.
- Search several websites to ensure that you are still getting the best price for your homeowner’s insurance policy. But remember, cheaper isn’t always better! Take care to make sure that you are receiving a competitive rate on your policy, and that the company your policy is under is reputable and financially stable.
Bookmark and Share
