Jim Mrotek • July 18, 2024

Is It Time to Review Your Homeowners Insurance?

Ensure Your Home and Loved Ones Are Properly Protected

Many of us rarely think about our homeowners insurance coverage. For those with a mortgage, the cost is often included in the monthly mortgage payment, making it easy to overlook. However, periodically reviewing your homeowners insurance is crucial to ensure you are neither underinsured nor uninsured for various disasters. Here are key areas to check:

Do You Have Enough Liability Coverage?
Many property owners are unaware that the liability portion of their homeowners insurance covers them both at home and while they're away. It also extends to family members living with you. This coverage is vital as it protects against various accidents and incidents that could otherwise result in significant financial burdens. For example:

Did your child accidentally damage your neighbor's property with a baseball?
Did your dog bite a visitor, leading to an emergency room visit?
Did someone slip and fall on your property?
Increasing your liability coverage or purchasing additional liability insurance through an umbrella policy is often more affordable than you might think.

Do You Have Flood or Earthquake Coverage?
Standard homeowners insurance policies do not cover flood or earthquake damage, yet these risks can be significant. Many homeowners underestimate their risk:

One-quarter of all flood losses occur in areas deemed "low risk."
Wildfires and other environmental factors can increase susceptibility to floods and mudslides.
Assess your property's risk for flooding and earthquakes and consult with us about the costs of obtaining coverage for these events.

Are You Covered for Rebuilding?
Insuring your home for its market value, purchase price, or mortgage balance is not advisable. Ensure you have sufficient coverage to rebuild your home and replace your belongings in case of a catastrophic loss. As construction costs can rise over time, it's essential to review this aspect of your policy periodically.

Are You Bundled?
Bundling your insurance policies, such as combining homeowners and auto insurance with the same company, can lead to substantial savings. Review your policies to see if bundling could benefit you.

If you have any questions about your coverage or need assistance with a review, contact us at Alliance Insurance Centers. We are here to help ensure your home and loved ones are fully protected.
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