As we welcome a new year, many of us focus on setting goals and creating fresh starts. While planning your resolutions, don’t overlook your homeowner’s insurance. An annual insurance check-up is a simple yet vital step to protect your home and ensure you’re not overpaying or underinsured. Here are actionable tips to help you conduct a thorough review:
1. Review Your Policy Coverage
Take a close look at your current homeowner’s insurance policy to ensure it aligns with your home’s value and any updates you’ve made.
- Actionable Tip: Check for gaps in coverage, especially if you’ve made improvements like a kitchen remodel or added a home office. These upgrades may increase your home’s value and need to be reflected in your policy.
- Pro Tip: Your policy should cover the cost of rebuilding your home at today’s construction prices, not just its market value.
2. Assess Personal Property Coverage
Your possessions matter, too! Make sure your personal property coverage is sufficient.
- Actionable Tip: Create an updated home inventory. Use a smartphone app or take photos of each room, noting high-value items like electronics, jewelry, or art.
- Pro Tip: Some high-value items may require separate riders for full coverage. Talk to your agent if you’ve made recent purchases.
3. Check for Policy Discounts
Insurance companies often offer discounts for updates or safety features that lower your risk.
- Actionable Tip: If you’ve installed a new security system, upgraded your roof, or added storm shutters, let your insurer know. These improvements might qualify for premium reductions.
- Pro Tip: Bundling your home and auto insurance can often lead to significant savings. Ask your agent about this option.
4. Reassess Liability Coverage
With more homeowners hosting guests or running businesses from home, liability coverage is increasingly important.
- Actionable Tip: Verify that your liability limits are high enough to protect you in the event of an accident on your property. Consider an umbrella policy for added peace of mind.
- Pro Tip: If you’ve added a pool, trampoline, or other features that increase liability risks, inform your insurance provider.
5. Understand Deductibles and Premiums
The right balance between deductibles and premiums can save you money while keeping you covered.
- Actionable Tip: If you’ve had no claims recently, you might consider raising your deductible to lower your premium.
- Pro Tip: Keep enough savings in an emergency fund to cover the deductible if needed.
6. Prepare for Weather Risks
The DFW area is no stranger to severe weather. Ensure your policy protects against local risks like hail, windstorms, and flooding.
- Actionable Tip: Flood insurance isn’t typically included in standard policies. If you live in a flood-prone area, look into additional coverage through FEMA or private insurers.
- Pro Tip: Review the policy’s exclusions carefully to avoid surprises during a claim.
7. Compare Policies
Insurance rates can vary widely between providers. If your premium has increased significantly, it’s worth shopping around.
- Actionable Tip: Request quotes from at least three providers. Make sure the coverage levels are comparable when evaluating options.
- Pro Tip: Ask your current insurer if they can match or beat a competitor’s rate.
8. Schedule a Meeting with Your Insurance Agent
Sometimes, a quick conversation with your insurance agent can uncover valuable insights and opportunities to improve your coverage.
- Actionable Tip: Schedule a check-in annually. Bring your updated inventory and any questions you have about your policy.
- Pro Tip: An agent who knows your long-term plans (e.g., buying a rental property or downsizing) can tailor your policy to future needs.
Protect Your Investment
Your home is likely one of your biggest investments. Conducting a homeowner’s insurance check-up at the start of each year ensures that your policy keeps pace with your life and protects what matters most.
If you’re thinking about buying, selling, or upgrading your home in the DFW area, I’m here to help you make informed decisions every step of the way. Contact me today to discuss how I can assist with your real estate needs!
