Financial Advice
Rich Best has spent 28 years in the financial services industry, as an advisor, a managing partner, directors of training and marketing, and now as a consultant to the industry. Rich has written extensively on a broad range of personal finance topics and is published on several top financial sites. Recent books include The American Family Survival Bible and Annuity Facts Revealed: What You MUST Know Before You Invest.

It’s Time for Homeowners Insurance Check-up

It’s Time for Homeowners Insurance Check-up

With everything we have going on in our financial lives the last thing most of us want to think about is our homeowner’s insurance. But, if you buy it and then forget it, you could be leaving yourself vulnerable to increased costs and liability. Take five minutes to review your insurance policy using this checklist:

  • Insurance premium rates are constantly being adjusted and carriers are becoming more competitive. It’s always worthwhile to call around a get quotes. Just make sure you know what value you need to insure before calling. It’s also a good time to update your coverage for the current value of your home and personal property.
  • If you haven’t already, check with you carrier and other carriers about discounts for combined auto and homeowner’s coverage.
  • If you have acquired belongings and personal property since you took out your policy, make sure they are covered under your policy. Some items may need a special rider. And make sure that your items are covered for their replacement value, not their depreciated value. If you haven’t done so, video tape your home’s interior and its contents and make sure to store the video offsite.
  • Consider raising your deductible. If your current deductible is $1000 you could raise it to $2500 and save on premiums. You will also avoid the possibility of your insurer raising your rates over even cancelling your policy over frequent claims. That’s what an emergency fund is for.
  • Cover your future. Most policies will cover replacement costs. Make sure that coverage keeps pace with inflation. At a minimum opt for 120% of replacement costs
  • Expect the unexpected. The liability limits on a homeowner’s policy are relatively low. An umbrella liability policy is inexpensive and protects you from just about anything that occurs on your property.
  • Consider the need for flood insurance. Flood insurance is only available as separate coverage available through the National Flood Insurance Program and a few private insurers. In many cases, people who don’t expect to be affected by flooding waters or mud slides have gotten a rude surprise.
  • If you’ve remodeled or are planning to remodel, contact your insurance agent to ensure you have all of the necessary coverages during and after renovation. That includes additional liability coverage for do-it-yourself projects or ensuring your contractor has the proper commercial business and liability coverages.
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