Have You Reviewed Your Home Insurance Policy This Year?
Now is a good time to do it!!
According to the Property Casualty Insurers Association of America (PCI), homeowners, renters, and businesses should start with a yearly review of their insurance policies.
Over the course of a year, an individual or business may have added upgrades, completed renovations or purchased new items that impact the amount of insurance coverage they needed. Conducting an annual review helps ensure that a home or business is fully protected.
1.Do a home inventory of possessions. An insurer may have tools that help.
2. Check whether the policy pays replacement cost or actual cash value for a covered loss. The compensation received for actual cash value may be much lower than the retail price of a new item, because the actual cash value takes depreciation into account. Replacement cost should not be confused with market value, however, which is the price a home would sell for today. In some areas, new building codes increase the cost of rebuilding.
3. Your insurance agent or company can offer coverage options, assist in determining the best type of policy and offer advice on the proper amount of coverage.
4. Flooding is the most common natural disaster. Flooding is not covered in standard homeowners insurance policies, but it can be purchased through insurance agents from the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Administration. In a few cases, private companies offer flood insurance coverage.
5. Amount of deductibles. The deductible is the amount of a covered loss that the homeowner must pay. The higher the deductible, the lower the premium. But the higher the deductible, the more a homeowner must pay if an event occurs that requires an insurance claim.
6. Ask about discounts. Some coverage offers a discount for things such as security systems, hurricane shutters, and smoke alarms. Some insurers offer discounts for consumers who purchase multiple policies.