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6 reasons to review homeowners insurance today

The following are 6 reasons to call your agent today to discuss your homeowners insurance.

1. Your home is underinsured.
How did you pick your homeowners insurance coverage? When we look at insuring a home one of the things we do is find the replacement cost and then add coverage for debris removal. This will sometimes make the coverage higher the value of the home and land and that is okay. You are not insuring your home for its value, you are insuring it to replace it if it was partially or totally destroyed. If your coverage amount is the same as your mortgage amount or the purchase price, that may indicate you need to get a replacement cost estimate done to your home.

2. If you have a new roof you are paying too much.
If you recently have replaced your roof your home should be eligible for wind mitigation discounts. The discounts could mean hundreds of dollars in wind credits toward your premium. Whats the catch? You may have to pay for a wind mitigation inspection (those cost between $70-100) to qualify. But if you do qualify for credits, you will get them for the next 5 years. Another way to save is just to update your insurance carrier on the age of the roof. They may give a age of roof credit and it doesn't cost you anything.

3. Your home may not have any water coverage.
When you signed your insurance application one of the things you signed is certain limitations to your insurance policy. While your agent should have explained these exclusions in detail, the chances are many people without water coverage do no understand they are unprotected. Even worse than that is the fact that in years past, water claims were more frequent and more costly than any other type of insurance claim. Make sure you know your options about water coverage.

4. The pets in your home could cost you thousands.
When we bought our first home, my wife brought her Doberman with her. Many insurance companies would not insure us since this breed of dog is considered by many carriers to be a "vicious breed." Regardless of your personal feelings about large dogs like pit bulls, many insurance carriers will not insure them and may even include a mandatory exclusion for dog liability (or animal liability). Make sure your pets are covered or you could be paying an attorney to defend you instead of your insurance company.

5. Smart homes, smart discounts.
If you are a gadget person and have your home setup to be "smart" you insurance company may be willing to give you a discount if you have the right type of smart device. These discounts are new to the insurance market but more and more companies are willing to charge less if the homeowner is taking steps to protect their home from losses. Check with your agent to see if your company participates.

6. Your valuables are underinsured.
If you have jewelry, fine art, coins, guns, sports equipment, musical instruments, expensive computer hardware, etc did you know your claim may be limited for $1,500? Read the policy to learn what your sublimit for those items are but if you have valuable items the best way to make sure they are covered is to specifically schedule them on the policy or purchase a separate policy for those items.

If you are not reviewing your policies reguarly you may end up with a claim that neither you or your insurance agent will be happy with. If you have not had a proper insurance review with your agent, you can click here to set one up.