How’s your insurance coverage? Have you checked lately?
Your property is one of your biggest investments. If fire, flood, burglary, or other disaster befell your property, what would become of your investment?
If you have good insurance coverage, then you’d recoup 100% of your investment minus the deductible. Should you be displaced from your home for a while, you’d even have your necessities paid for in the meantime, such as the costs of a hotel and meals.
But did you know that without property insurance, if your house were to burn down, not only would you have no house, but you would still owe the mortgage! This is one reason why the mortgage companies require homeowners to buy insurance when they buy a house.
But things change. If your house, your assets, or your needs for insurance coverage have changed since you bought the property, then you should definitely review your coverage with your insurance agent and get the policy updated. Ideally you should meet with your agent once each year to update the policy. Make sure to tell your insurance agent if you do a major remodel or home addition, as you will want to increase your coverage to reflect the new higher property value!
During the home buying process is when many people select their insurance. Select it and forget it – that’s what most of us do. But the home buying process is a very short time span when you do so many important things. Did you really evaluate your policy carefully at that time? Do you know what your current coverages are? Do you remember how much your deductible is? Did you discuss with your agent about additional insurance coverages that would benefit you?
This is just a friendly reminder to call your insurance agent and check in on your property insurances. According to Sze Fong at Scott Anderson Agency, you should make sure to inquire about liability coverage, reconstruction cost, extended replacement cost, loss of use coverage, and an umbrella policy to cover all your assets. Have a conversation with your agent at least once per year and any time you do major property upgrades to make sure your coverage is sufficient.
Do it now while you’re thinking about it!