Why should I consider doing home insurance reviews annually?

If something unexpected happens, homeowners insurance may pay for losses and damage to your property. Standard homeowner’s insurance may not cover damage from natural disasters such as earthquakes or floods, so it is good to review your insurance and add coverage your property will need. Most often, people purchase a homeowners insurance or renters insurance policy when they move into their new home. Many people pay little attention to their policies after that. Over time, as they make renovations, purchase new items or replace existing appliances, they don't perform home insurance reviews to check that they are properly covered. This can lead to a gap in their coverage. Conducting an annual home insurance review can help ensure that your insurance coverage will be more up-to-date.

Tips for a successful home insurance review

The next time you need to renew your insurance policies, consider taking these steps to help you get the most out of them.

• Create a home inventory. A home inventory is a listing of the property in your home, the date you bought it and what you purchased it for. This list can be used to discuss your needs with your agent as you choose the right coverage.
• Meet with your agent. Your insurance needs change over time. Conducting a home insurance review with your agent at least once each year can help you determine if your policies still make sense for your current situation. During this meeting:
  • Ask about discounts. Before you renew your policy, speak with your agent about discounts that may be available. You may qualify for discounts for alarm systems and bundling or reduce your premium by choosing higher deductibles. Adding a security system or getting a new roof may reduce the risk of damage or theft to your home.
  • Ask to review your auto policy. If you combine your home or renters insurance with auto insurance to get a discount, consider reviewing your auto coverage as well. Ask them about any safe driving discounts you might be eligible for.
  • Review home renovations. If you have added on to your home or updated any rooms in the house, talk about them with your agent to help ensure your coverage reflects the changes as your property’s value may have increased.
  • Talk about any landscaping changes. Any new sprinkler systems, sheds, pool or even a new riding mower may be a reason to make changes in your policy.
  • Share any changes in the appliances. Like home renovations, updating your furnace or air conditioner may increase the value of your home.
  • Confirm your home is insured for the estimated cost to rebuild. State Farm® suggests you select a coverage amount equal to at least 100% of the estimated replacement cost of your home, but the choice is yours. You should also ensure any replacement cost estimate reflects the actual characteristics of your home. Insuring your home for at least 100% of its estimated replacement cost — not the current market value — could give you the means to replace your home entirely in the event of a loss.
  • Review your professional needs. If you own a business, changes such as selling your business, going public or changing office locations will need an insurance review.
  • Discuss retirement and aging milestones. If you are no longer working or downsizing your home, an insurance review can help identify needed adjustments in your policy.

Insurance review reminders

You should remember to:

• Share any significant life changes with your agent. Getting married, having a baby, starting a new home business or even getting divorced may trigger changes to your property that are worth a conversation to address the correct coverage with new needs. Your agent can make you aware of extra coverage available for jewelry and firearms or additional coverage for business property. Making your agent aware of life changes and any high-value changes is necessary for proper coverage.
• Ask questions about current coverages, limitations and exclusions. You can get the best out of a meeting with your agent by asking about your current coverages and understanding any limitations and exclusions to the homeowners policy. You may be better prepared for a loss when you know what is covered and what is not.

For more information about a home insurance review and your policies, contact a State Farm agent. You can get a homeowners insurance quote now, or give us a few details and a State Farm® agent will reach out to you.