Homeowners insurance coverage is a worthwhile investment that will prevent you from losing everything you have worked hard for if your home is burglarized, vandalized, or involved in a natural disaster. If you currently have an insurance policy but are leery about the amount of coverage that you have, due to a recent rash of break-ins in your neighborhood, take a look at your current policy and make adjustments to it.
Your coverage needs can change from time to time, especially when you purchase new possessions or have gotten rid of some items that were initially covered by insurance. Review a copy of your insurance policy to determine if your insurance coverage is sufficient. If you have made recent purchases, write a list of the items you purchased and include the value of each possession.
Make a mental note to meet with your insurance agent to report the influx in possessions so that they can be added to your existing policy. This works the same way if you have gotten rid of a lot of things and no longer have a need to insure them. By omitting the possessions from your coverage, your deductible amount and monthly insurance payments may be reduced.
Choose Actual Cost Value Or Replacement Cost Value
When you first obtained a homeowners policy, you were required to choose an actual cost value or replacement cost value for the items that you own. An actual cost value would provide you with a monetary amount that is equal to the current value of items that were stolen during a burglary.
A replacement cost value would provide you with a monetary amount that is equal to the amount that it would cost to buy the same exact types of items that were stolen.
Although it costs more to have replacement cost value coverage, it is worth it to obtain this coverage if you are worried about your possessions depreciating and not receiving enough money to buy replacement items. Let your agent know how you would like to handle all of the items that are being added to your existing policy, and change the status of the items that were previously insured if you wish to.
Add A Personal Floater Policy For Valuables
There is a limit to how much coverage you can obtain for cash, artwork, jewelry, and other valuables. It is best to keep large sums of money in a bank account. All other valuables can be insured for more than what your homeowners insurance policy provides, but you will need to add a separate personal floater policy to acquire the coverage you desire.
You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.