It’s that time of year when we prepare for a fresh new year. While you’re in that end-of-year organizing mode, set aside some time to think about your property insurance.
- Review Your Policy Annually: Your policy renews once a year; use this opportunity to assess coverage needs and shop around for the best value. Never simply auto-renew.
- Update on Home Improvements: Inform your insurer about any significant renovations, additions (e.g., a new roof, an extension, a pool), or system upgrades (e.g., plumbing, electrical, security) as these changes affect your home’s rebuild cost and may qualify you for discounts.
- Start your hurricane kit list: Make a list of what you’ll need for your kit so you’re ready to go when the Hurricane Sales Tax holidays roll around.
- Create or Update Home Inventory: Document your personal belongings, especially new purchases, with photos or video, and note their current values. Store this list, along with appraisals for valuables (jewelry, antiques), in a safe location away from your home, such as a secure cloud storage or a safe-deposit box. This aids in determining adequate coverage and serves as proof of ownership if you file a claim.
- Verify Coverage Limits: Ensure your dwelling coverage limits match the estimated full rebuild cost, not the market value. Check if specific items, like valuable new purchases, require special riders to be fully covered.
- Check Deductibles: Evaluate your current deductible. A higher deductible typically lowers your premium, but ensure you can afford the out-of-pocket expense if a loss occurs.
- Explore Discounts: Ask your agent about potential discounts for new security systems, smoke detectors, storm shutters, or for bundling your home and auto policies with the same carrier.
- Understand Exclusions: Standard policies do not typically cover damage from floods or earthquakes. Consider purchasing separate, specialized coverage if you live in an at-risk area.
If your plans for the upcoming year include improvements that mitigate storm damage, check out these helpful resources. You may qualify for grant funding or discounts.