by John Savage, CFHC and Insurance Broker
When's the last time you've done an Annual Insurance Review? The majority of individuals I have worked with have never done or considered doing an Annual Insurance Review as part of their over all Asset Preservation Strategy.
Insurance Reviews are necessary to make sure your insurance policy is up to date and reflect the appropriate coverage amounts necessary to cover your home, property, and even detached building such as a detached garage or cottage or guess home. If any of the properties have been added to your home, upgraded, and or upgraded in anyway, you have had new renovations to your property and you have a catastrophic event such as a fire, wend storm, or major hail damage, you could be out of pocket for the difference in rebuild cost because you did not properly update and inform your insurance carrier upon completion of any projects or renovations.
This is why I always recommend doing an Annual Insurance Review. It cost nothing but not doing it could cost you everything. Some times people feel like they have to wait until their insurance policy is up for review before they make any necessary changes, this is simply not true and often cost home owners hundreds and even thousands a dollars more because they may have paid too much for insurance or found themselves later uninsurance or underinsured all because they put off doing an Annual Insurance Review.
In fact, pick a time each year say around early fall or beginning of spring time to follow-up with your insurance agent to do your Annual Insurance Review or as often as you have a major life event that you feel warrants a review such as:
A. Adding a new home to your property.
B. If you install a new pool and will have guess over with small children.
C. If you get a special dog breed you want to make sure covered under your Liability Coverage.
D. You find that you are in an area that requires additional insurance such as Flood or Earthquake Coverage.
E. Other insurance may include Home Warranties to cover systems and appliances that may not be covered under your current Home Owners Policy.
F. You can also look into Riders, Trampoline, Trampoline, or Sewer line Insurance.
G. There is also Extended Replacement Cost that need to be considered as well when review or updating your policy. This will vary from carrier to carrier and the type policy you have with your carrier.
H. If you have a lot of assets and ever find yourself in a major accident and injured someone, you do not want to be in a position where someone tries to sue you. Umbrella Insurance could be another potential Insurance Product you may want to discuss with your Insurance Agent to see if it is right for you. Umbrella Insurance will fill in teh gaps of what it not covered under the stand Home Owners Insurance Plan. These are great to have and really affordable.
If you need help dealing with Financial Challenges, let Unwind Financial Consulting Services help you so you do not have to do it alone!