Home insurance plays a vital role in protecting your finances from devastation in the event of a natural disaster, fire, burglary and other unpleasant events. Unfortunately, many homeowners don’t carefully evaluate their initial coverage, often opting for the minimums allowed. This can leave gaps in their coverage, which may cause an unpleasant surprise if disaster hits. That’s why it’s vital for homeowners to carefully review their policies annually with your independent insurance agent to determine if changes are needed. Here are some areas that may impact your current coverage levels.
Home Improvements
Home improvement is one of America’s great past times and can also increase the value of the home. If you have performed any significant improvements, such as renovating the kitchen or building a garage, you will need to increase your policy limits to account for these additions. Otherwise, if your home is damaged or destroyed you will not receive a payment high enough to cover the cost of replacing the structure as it was before the incident.
Collectibles
Have you inherited or acquired any antiques or artwork? If so, review your policy to ensure that these items are covered in case of loss, damage or theft. Most insurance policies only cover the contents of your home up to half the value of the home itself. For this reason, many high-value items require an additional rider to cover their full replacement cost. Some of these items include:
- Antiques
- Wine Collections
- Art
- Jewelry
- Furs
Pets
Liability coverage is also a vital component of homeowners insurance. This coverage protects you if someone is injured on your property. It is also critical for anyone who owns a dog or other pet that may bite or attack. Your liability coverage can cover the cost of medical and legal bills if your pet gets into an altercation with someone, even if it is away from home. So, if you have welcomed a cute little bundle of fur into your home, plan for the day when it’s not so little by ensuring that you have adequate liability coverage.
Home insurance isn’t a set-it-and-forget-it financial tool. It requires periodic review to ensure that the policy keeps up with your lifestyle and the rising replacement cost of goods.
When was the last time you reviewed your coverage? Call Pan American Insurance at (888) 726-3380 for more information on El Paso home insurance.