Find the Holes in Your Homeowners Insurance Policy
The Insurance Information Institute (III) has found that one out of every twenty homeowners have had a claim. The most severe losses occurring with fire, lightning, and debris removal, with the average claim costing $31K.
Many homeowners are under-insured by a few thousand dollars according to United Policyholders, an insurance consumer advocacy group in San Francisco.
Incurring a devastating loss from damage to a home could be a life-altering event that could take an entire lifetime to recover from.
Some people don’t have a lot of extra money just lying around. Mix that with the statistic that a bit over two-thirds of homeowners are under-insured–in some way, as estimated by Marshall Swift, a company specializing in determining the insurance values of homes nationally– and that’s a recipe for disaster.
Creating Annual Plans to Ensure Adequate Coverage
If you’re in the habit of getting homeowners insurance quotes every year to shop for better rates, you’re reminded about what coverage you need. If you’ve remained with the same insurer for years, you probably do what many policyholders do—get renewed policies every year, review it quickly, and continue paying premium without REALLY reviewing coverage. Far too often, people don’t think about ‘new’ items, improvements, or other appreciated factors they need coverage for unless prompted.
You may think getting homeowners insurance quotes every year is a waste of time if you’re happy with your current insurer and trust they’re making decisions that protect you. However, there’s something to learn from chronic insurance quote shoppers—to review coverage annually. When shopping for quotes, you’re prompted to remember possibly needed changes that you may have forgotten. Frugal and frequent insurance quote shoppers are probably some of the most adequately and accurately insured homeowners because they’re constantly reviewing their coverage. Do one of two things annually to make sure you’re not under-insured:
– Touch base with your current insurer upon every renewal to review coverage, asking your insurer to go over coverage like you’re a new customer. – If your credit rating has been improved since you bought the policy, don’t forget to ask your homeowners insurance company to update the credit score. Most of them they will not update your credit score without your permission. – Even if you’re not interested in switching insurers, obtain at least one or two more homeowners insurance quotes at renewal so you’re reviewing coverage thoroughly. There’s nothing to lose and will lead to one of two things—finding better insurance quotes, OR finding where you’re lacking, allowing you to make needed changes with your current insurer.
An annual review of your homeowners insurance policy is important
Many homeowners don’t realize they’re under insured only AFTER a catastrophe. It’s simple–call your insurer every time you get a renewal notice. An annual review of your homeowners insurance policy is minimum precaution to ensure you’re properly covered for loss potential that could devastate your family’s finances. If you haven’t had a review in over a year—whether from insurance quotes or reviewing coverage with your current insurer, put it on your to-do list right away, because there could be a loss approaching right away too.