When And How To Update Your Homeowners Insurance Policy

In Homeowners by Doug Phelps

A new year is an ideal time to review your homeowner’s insurance policy to ensure it provides adequate coverage for your home. Reviewing the details of your coverage and doing any updates can eliminate otherwise potentially expensive mistakes.

How to do? Start by looking around your home. Have you acquired new computers, new ultra-high def flat screen TVs or other costly electronic items? Be certain that your policy’s “contents coverage” is sufficient to replace them in a loss.

Many homeowners don’t realize that there are limits on coverage of personal property. No matter the value of your jewelry, furs, watches, artwork or collectibles, standard policies typically will pay only $1,500 – and that only for theft. So, if you accidently drop your diamond ring down the drain, you won’t get a dime. To have the right kind of coverage, consider a rider to the policy that boosts coverage to ensure valuables will be replaced at their appraised value.

Additionally, riders expand coverage also for accidental or mysterious disappearance. Deductibles aren’t typically attached to this extra form of coverage.

Insurance professionals say there are five events that should trigger a review of your homeowner’s policy:

  1. When it comes up for renewal.
  2. When major alterations or improvements are made to your house.
  3. When you have made your house safer by installing state-of-the-art fire or burglar alarm systems, or upgraded heating, plumbing or electrical systems.
  4. Any major life change, such as a marriage, divorce or when adult children move back into the house.
  5. When you start a home-based business.


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