Questions to Ask Your Insurance Agent During a Review of Your Policy

An annual insurance review is strongly advised. After a detailed conversation, your local agent will know the specifics of the coverage that best meets your needs. Consider the following factors when reviewing your insurance policies.

Does my current policy offer sufficient coverage to rebuild my home? The purchase price of a home does not necessarily reflect the cost of rebuilding it. For instance, when you first purchased your home, it may have been insured for $200,000 in the event of a loss. After a decade or so, both your property value and the cost of construction increase, and it now costs $300,000 to rebuild your home. If you have yet to update your policy coverage, this could result in a $100,000 gap, leaving you without the financial means to rebuild.

How does the completion of my basement affect my policy? Because cellars are typically underground, they can flood. Some situations are covered by homeowner's insurance, while others require flood insurance. Discuss with your agent the types of coverage that can be added to protect your newly renovated basement.

Do I have adequate coverage and endorsements in case of a sewer backup or sump pump overflow? Many believe their home or business insurance covers sewage backup or sump pump overflow. Nevertheless, it is typically NOT covered by a standard homeowner's insurance policy. Learn more about this recommendation here. Sewer backup and sump pump overflow certification

Does my homeowner's insurance cover stolen or damaged heirlooms, antiques, musical instruments, engagement rings, and other valuables? Your current policy should provide standard coverage for your home and personal property, but there is typically a cap. Herein lies the significance of the scheduled personal property. It is an optional addition to your homeowner's insurance policy that can increase coverage limits for specific high-value items.

Should I purchase home and auto insurance from the same company? Most insurance companies offer home and auto insurance bundles with various perks, discounts, and unique coverage options. The convenience of having all of your protection in one place and, in some cases, on a single monthly bill is another advantage of bundling.