Many home owners are not clear on
exactly what their insurance covers or
what the level of coverage is. They
assume that if there is a catastrophic
loss, they will be covered almost
without exception. It is a smart idea to
take a close look at your current
Homeowners' Insurance policy and review
the following major components.
Homeowners' Insurance Checkup
What is
covered:
Have you made any additions or
improvements to your house that will
need to be added to the policy? If you
have, inform your agent in writing and
send photographs to validate the
improvements.
What is the coverage level:
Has the value of your house risen in the
last year? If you do not have a rider
that automatically raises your coverage
on an annual basis, you will need to
adjust your level of coverage to match
the increase in property value.
Guaranteed replacement cost:
Does your policy stipulate that you will
be paid a guaranteed replacement cost or
is there a limit to your coverage.
Review this with your agent.
Liability Insurance:
What are the limits of your coverage in
a situation where someone may be injured
in your home?
Content Insurance:
Have you added any expensive items
(computers are a prime example) that
need to be added to your policy?
How to maximize your coverage
and minimize your premium cost
The following are a number of methods
that you can use to potentially lower
your annual premium for your Homeowners'
Insurance. Consult your agent to see
which apply and how much you can save.
In addition, most will add to the safety
and security of your house.
Dead bolts:
Install dead bolts on all exterior
doors.
Security alarm:
Install a security alarm
Smoke detectors:
Have smoke detectors on all
living levels.
Fire extinguishers:
Have operational fire extinguishers
available in the house.
Consider a higher deductible:
If you are comfortable with the
possibility of having to pay a bit more
out of pocket in case of a loss, raising
the deductible (the amount you will pay
when there is a claim) will lower your
annual premium.
Multiple policy discounts:
Have your homeowners' policy and auto
policy with same insurer: Many insurers
will give you a discount if you maintain
both policies with them.
