With 2019 coming to a close and 2020 getting closer and closer, now is the time to take a look back at what might have changed in your life over the last year. Here are some things to review.
Reviewing your homeowners policy may not rank high on your annual home-maintenance checklist, but it’s time well spent. In fact, doing an annual review of your home insurance policy may save you big bucks now and a lot of grief down the road. Consider the following changes as you review your home insurance coverage in the new year.
A change in your home value: Home values can increase significantly with time. For example, if you purchased your home for $250,000, ten years later it may cost $325,000 to rebuild. This example would result in a coverage gap of $75,000, an amount you would not be covered for if your coverage was still based on your purchase price.
Home improvement: Renovations and upgrades such as a kitchen or bathroom remodel or a finished basement can significantly increase the value of a home. You can increase your coverage to ensure your home and belongings are fully covered.
Addition of valuables: A basic homeowner’s insurance policy provides coverage for your home and belongings, but it likely does not cover all of your valuables. Items such as wedding rings, family heirlooms, artwork and antiques are usually not covered unless you add an insurance rider. Also consider any big “toys” you may have acquired over the holiday season such as a new big screen TV, laptop or other high-value gifts – these items need to be added to your policy.
You likely take your car in for an annual service checkup, but when was the last time you gave your auto insurance policy a checkup? If you’re like many consumers, you allow your car insurance policy to automatically renew every year without really taking a second look at it. It’s convenient, but it can cost you in the long run if you don’t have the right coverage. Consider the following changes as you review your car insurance coverage in the new year.
New Drivers in the Family: Do you have a teenager who just started driving? Even if they don’t have their own vehicle, they will need to be added to your car insurance policy. Adding a teenage driver to your auto insurance policy can be expensive in the short term, but failing to do so could cost you money down the line if there is a dispute over coverage.
Vehicle Status: As vehicles age, their values can drop significantly. You can save money by increasing your deductible, lowering your coverage or dropping some parts of your coverage altogether. Before you do anything, it’s important to discuss the pros and cons of all of your options with your insurance agent.
Driving Habits: Are you driving more or less this year compared to last year? Will you have any upcoming road trips that may require additional coverage? Taking the time to review these aspects each year will save you money and give you peace of mind.
If you're looking to review your coverage, click the link below and schedule an appointment with one of our licensed agents. We want to wish you a very Happy & Safe New Year!