With everything we have going on in our financial lives the last thing most of us want to think about is our homeowner's insurance. But, if you buy it and then forget it, you could be leaving yourself vulnerable to increased costs and liability. Take five minutes to review your insurance policy using this checklist:
- Insurance premium rates are constantly being adjusted and carriers are becoming more competitive. It's always worthwhile to call around a get quotes. Just make sure you know what value you need to insure before calling. It's also a good time to update your coverage for the current value of your home and personal property.
- If you haven't already, check with you carrier and other carriers about discounts for combined auto and homeowners coverage.
- If you have acquired belongs and personal property since you took out your policy, make sure they are covered under your policy. Some items may need a special rider. And make sure that your items are covered for their replacement value, not their depreciated value. If you haven't done so, video tape your home's interior and its contents and make sure to store the video offsite.
- Consider raising your deductible. If your current deductible is $1000 you could raise it to $2500 and save on premiums. You will also avoid the possibility of your insurer raising your rates over even cancelling your policy over frequent claims. That's what an emergency fund is for.