Review the limits in your homeowner’s policy and the value of your possessions at least once a year. You need enough insurance to cover the labor and materials to completely rebuild your home, called the replacement value or replacement cost. And, you want to make sure your policy covers any major purchases or additions to your home.
Homeowners policies typically have dollar limits on how much you’ll receive to replace valuables such as furs, firearms, jewelry and home-based business property. These high-value items need to be covered as scheduled property on your homeowner policy to receive the full value of each item in the event of a loss.
Ask for discounts on bundling your home and auto insurance. Most insurance companies offer discounts for purchasing two or more policies. You can also get discounts for other things like adding a home security system.
Consider adding umbrella insurance. Whether it's a serious car accident involving pricey medical bills or an incident on your property, you can quickly find yourself responsible for damages that exceed the limits on your auto, homeowners or boat policies.
Homeowners policies will cover flooding only if it’s caused by a pipe or other system that breaks in your home. Protection against flooding that originates from the outside must be covered by flood insurance. Don’t wait until the next rain event to purchase flood protection. FEMA has a mandatory 30-day waiting period on all new flood policy purchases
Randall J Benzel, CLF, LUTCF
All Insured Group