Don’t assume that your current homeowners insurance will cover you at renewal because there may have been some life changes that require an update on your policy.
Home insurance is a confusing policy to own. This is because policies are molded to fit the needs of the individual, so coverage can vary as widely, like the ravines of the Grand Canyon. If you have never read the entirety of your policy, it is time you do. Within this policy you will know everything you need to know. What happens if a meteor crashes into your home? What about a broken pipe and water damage? Here are a few things you need to look at when it comes to reviewing your policy at renewal.
Contents – Content coverage is generally placed between 50 and 70 percent of your home’s value and helps pay to replace or repair your damaged belongings if they are affected by the covered damage. That means if you’re home’s value is $100,000, for example, coverage will range from $50,000 – $70,000.
Structure – How much would it cost to completely rebuild your home if it were utterly destroyed. When reviewing your policy ask yourself if you made any new renovations to the house. If you did, you should talk to your agent to update your policy to reflect your home’s new value.
Liability – Medical bills are costly and if someone injures themselves on your property, you will be liable. In order to be completely covered, you need to be transparent with your provider. Do you have a dog? What about a tree house or trampoline? These are all things your insurer needs to know in order to provide adequate liability insurance.