The Importance Of Reviewing Your Homeowners Insurance

The Importance of Reviewing Your Homeowners Insurance

Remember to review your homeowners insurance every year so that you know what is covered and you're liable for.

Updated on Jun 26 2020

Homeowners insurance can be tricky. It’s a necessity when you own a house or property, but coverage options and policies all differ. It’s important to review your homeowners insurance so that you know what is covered and what isn’t.

What is covered under your homeowner’s insurance policy?

You want to know exactly what is covered under your policy. What kind of natural disasters are possible where you live? You want to consider that when you review your policy. Or, are sewage and gas lines covered? Policies generally include personal property, the home that you own, living expenses if something happens to your house, and liability. When you receive your renewal notice, you’ll be able to take stock in what you own and see if you need to add anything else.

What type of costs can I expect with my homeowner’s insurance?

Premiums are high in the United States. There is no set cost that each homeowner will pay. Costs are affected by how old your home is, the size of your home, the location of your home, your credit, and more. You can shop around for different types of policies when you do your yearly review. You may find that you can get a better policy elsewhere.

How does claiming work with homeowners insurance?

When something does happen to your home that is covered under your policy, you will need to make a claim. The insurance company that you have your policy through will reimburse you for the damage in your home or your lost personal belongings. They can issue this in a few different ways, including reimbursing you the cash value of what was lost, replacing your items without considering depreciation, or will use extended coverage, which may go past your policy’s coverage limits.

Different options for different situations

As you do your yearly review, it’s important to take a look around at what your insurance’s competitors are offering. You may be able to get better coverage if you decide to switch. Your current homeowners insurance may also offer you better rates if they know you are looking elsewhere for your options.

It’s important for coverage, cost, claims, and competition when you are reviewing your homeowners insurance. You’ll get a yearly review from the insurance company, so don’t ignore it. Take the time to sit down, go over the details, and compare your rates and coverage options. A financial advisor is an option if you have questions about your insurance policy.

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