The next time you need to renew your insurance policies, consider taking these steps to help you get the most out of them:
- 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.
- Ask about discounts. During your annual home insurance review, ask about policy discounts. Before you renew your policy, speak with your agent about discounts that may be available. You may qualify for discounts for alarm systems or higher deductibles. Commonly overlooked discounts include infrequent or safe driver discounts.
- Insure your home for the estimated cost to rebuild rather than the real estate value. State Farm™ suggests you select a policy amount equal to at least 100% of the estimated replacement cost of your home, but the choice is yours. You also should make sure 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.
Carefully review the limitations on coverage and exclusions in your policy. Some items in your home might qualify for extra protection. For example, you may need more protection for jewelry and firearms. Business in the home coverage can protect furniture and equipment used for business purposes. Talk to your agent to make sure you're not overlooking important add-ons to your policy.
Because insurance protection is a contract, any coverage descriptions in this article are general only and are not statements of contract. All coverage are subject to all policy provisions, including applicable endorsements.