by Erica Coran
Spring is a great time to review your insurance coverage! As your life changes so do your insurance needs, instead of just dusting around the corners of your insurance policy this year, take the time to read them over and ask yourself the following key questions:
1. Is my home covered for the total cost to rebuild?
Review your policy to make sure that you have enough coverage to rebuild your home to its current value; this includes any upgrades that would be needed to bring your house up to code by the current standards. This affects older homes that have not been upgraded in 20+ years. Make sure you are accounting for any renovations or upgrades you have made in the past year. You risk being under insured if you have not updated your policy to reflect the current value of your home.
2. Do I have enough coverage for expensive items?
Have you bought or received as a gift, any high-valued jewelry since you purchased/renewed your policy? When was the last time you had items you own appraised? Standard homeowners insurance has dollar limits for the theft of certain types of expensive items like jewelry, furs and silverware. To insure these items to their full dollar value, consider a special personal property endorsement or floater. This coverage includes “Accidental Disappearance” meaning coverage if you simply lose that item- and there is no deductible.
3. Do I have enough liability insurance to fully protect my assets?
Standard Homeowners policies have liability coverage, paying for judgments against you and your legal fees, up to a limit set in the policy. An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo, or auto policy. However, in our litigious society, you may want to have additional protection, that’s what an umbrella liability policy provides.
4. What vacations am I taking this summer, should I rent out my house during the vacation period?
Whether you own a second home that you plan to lease to a tenant, or you want to rent out your primary residence through an online service such as Airbnb, your first step should be to call your FIS Insurance Agent. Depending on the rental scenario, your standard Homeowners policy may not cover losses incurred while your home is rented out, and you may require a more specialized insurance policy.
5. Do I still need comprehensive/collision on my car?
If you’re driving an older car that is worth less than $1,000-or less than 10 times the insurance premium-the optional coverages may no longer be cost effective. Consider saving money on your premium by dropping either comprehensive or collision coverage.
As an agent, this is a great article because it discusses important questions to ask regarding your current coverage. Some people try to get the least expensive policy and end up paying more if they have a claim.
Call us to discuss your policy to make sure it is giving you the proper coverage you desire.