Review Your Homeowners Insurance Policy After Completing Your Summer Home Improvements
August 9, 2011
Summer is the most common time for home improvement projects, with those long sunny days to get lots of work done in your home and yard. That screened porch and new bathroom you've been meaning to tackle have finally become a reality, but are these new additions to your home adequately covered by your homeowners insurance?
Review your dwelling coverage
Your home insurance premium, in part, is determined by the cost of rebuilding your home from scratch. With new additions and home improvements, this cost will go up. It is important to make sure the rebuild cost of your home is accurate and up-to-date, so that in the event of an unfortunate loss, such as a fire, you will be able to get the appropriate amount of money back to rebuild your entire home.
It may have been a long time since you last added up the cost of replacing your home's contents if they are lost or damaged.
In the fall, you should take the time to make sure your homeowners insurance coverage is adequate, taking into account the new replacement cost of your home, including your improvements and additions. Your dwelling coverage should have a limit high enough so that, in the event of a loss, you would be able to repair or rebuild your home with similar materials. If you believe your home's replacement cost surpasses your dwelling coverage, it may be time to add on more coverage to your policy.
Update your home inventory and contents coverage
Since you will already be reviewing your homeowners insurance dwelling coverage, for the structure of your home, it is a good idea to examine if your personal property coverage is sufficient as well. It may have been a long time since you last added up the cost of replacing your home's contents if they are lost or damaged. Take the time to review your last home inventory and add on any new items you may have purchased since then, including photographs and receipts for these items. If your new total exceeds your current contents coverage, talk to your insurance company about raising your personal property coverage.
Save money by reviewing your utilities
While it may seem like you are adding on more costs to your home improvements, this can save you a tremendous amount of time, effort, and money later on. In the event of a loss, you are going to want to be able to rebuild your home and replace its contents. At the same time, you can also try to cut costs and save some money by reviewing your utility options in addition to your insurance policies.
If you have been using the same cable, electric, and heating companies for years, it may be time to shop around again. That company that offered such great deals years ago may be charging the highest prices now. It is a good idea to search for deals from utility companies in the fall, before the cold sets in, since energy and heating bills can go up dramatically in the winter months.
You will feel much safer and better protected with up-to-date homeowners insurance coverage protecting your home, its contents, and your peace of mind.
