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Homeowner’s Insurance – When Was the Last Time You Checked Your Coverage?

Real Estate Agent

Reblogging from Barbara Altieri's posting, this article is a great refresher for all of us owning a home or investment property.  It's important to insure adequately so when disaster strucks, you're covered.  Now take a good look at your policy coverage and modify it at renewal time (or earlier) if need to.

Original content by Barbara Altieri RES.0781237

Homeowner’s Insurance – When Was the Last Time You Checked Your Coverage?

Back in August, many of us in CT got slammed by Hurricane Irene.  Houses floated away at the shore, others took serious hits from fallen trees, flooding was pervasive, and trees toppled like matchsticks.

My property was the victim of multiple fallen trees – down on the ground – on top of each other – resting precariously on power lines – across my driveway – and arranged like pick-up-sticks against each other.  My yard looked like a war zone.  People drove by, stopped in front of my house, and took pictures.

So, the cleanup began.  The insurance company was called.  All in all, our house did not sustain damage (which is just incredible).  However, it made us pay a little more attention to our homeowners insurance to be sure we were adequately covered for these random weather occurrences.

Many homeowners select a policy, pay each year, and don’t bother to check it frequently to make sure they have the right coverage.   I have found that some new home buyers just purchase the cheapest they can get to satisfy the lender requirement.

Having adequate homeowners insurance is an important part of home ownership and protecting your investment. 

Here are some things to look out for based on personal experience:

Dwelling/Structure – This covers the main building structure, roof, walls, windows, doors, etc.  Your house should be insured for the cost to rebuild/replace in case it is destroyed.  Don’t overinsure by insuring your home for market value.  Insure the house, garage, shed, etc. NOT the land.

Personal Property – Clothing, computers, furniture, etc.  Cover your contents for replacement cost not cash value, especially with electronics. You may need a special rider and will have to provide appraisals for items like expensive jewelry and artwork.

Liability and Lawsuit ProtectionHomeowners insurance typically covers you if someone gets injured on your property.  However, the standard coverage man not be enough. You may have to consider an umbrella policy to increase liability coverage if your net worth is higher than average.

What about deductibles?   This is the out-of-pocket cost you pay when a claim is made. The lower the deductible, the higher your insurance premium will be.

How about those hurricanes, forest fires, earthquakes, lightning strikes, floods and any other similar peril? Standard policies may not cover damage from these occurrences.

Be proactive.  Read your policy and talk to your insurance professional to make sure you are adequately protected against risk and potential financial disruptions.  

Make sure you have the right type of insurance in place and review it annually.  

Prepare yourself because once you have a loss and find you are underinsured, it is DEFINITELY too late.

Better safe than sorry!


Homeowner’s Insurance – When Was the Last Time You Checked Your Coverage?



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Comments (2)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

It is always good to check the coverage every few years to make sure you have the coverage you need.

Oct 05, 2011 07:32 PM
Doug Bullwinkel
E Mortgage Capital, Inc. NMLS 1416824 - Roseville, CA
Mortgage Loan Officer NMLS #281609

Several years back there was a major fire in the Oakland Hills in California.  Many of those homes had been built 25 years earlier and had never updated their homeowners insurance policy.  Million dollar homes had only 15% of their value covered for replacement.  When you refinance today, the lender guidelines require replacement cost coverage for your insurance but it's a good idea for everyone to have a review at least every couple of years.

Oct 05, 2011 10:12 PM