Time For Your Annual Homeowner’s Insurance Renewal? 3 Factors To Consider

Once a year, your homeowner's auto insurance policy comes up for renewal. Generally, the renewal process is automatic, with your insurance company sending you a statement that goes over your coverage as well as how much it will cost for the next year.  

During your annual renewal, you shouldn't just pass over the statement; you should look at the renewal notice carefully and make sure the coverage and pricing still work for you and your home. As you review your homeowner's annual renewal notice, review the coverage, check the costs, and look for discounts. 

#1 Review the Coverage

The first thing you need to do is review the coverage for your home. Make sure that nothing has been removed or added to your coverage.  

You are also going to want to make sure that your insurance policy actually provides you with enough coverage. Most people's insurance coverage, if they were to experience a total loss, would leave people with a great deal of uncovered loss. 

Does your personal property coverage limit actual equal the value of your personal property? Are all of your electronics covered under your personal property coverage or do you need a special rider to cover all those items? What about the coverage for your actual home? Is the value it is insured at equal to the value of the home? Really make sure that your coverage has you covered. 

#2 Check the Costs

Next, examine the cost of the premium overall and what you are paying for different types of coverage. Your premium may have increased or decreased a little over the last year, although if you have the same level of coverage, the premium costs shouldn't be drastically different. If you notice any drastic differences in the cost of your premium, be sure to ask your insurance company about those differences. 

Look at the deductibles that you have agreed to pay if there is damage to your home. Make sure the deductibles are at a level so that you could easily afford to pay them if necessary. If you can easily afford the deductible, consider raising the deductible to lower your premium 

#3 Look for Discounts

There are lots of ways to save on your insurance; make sure you are taking advantage of any saving opportunities. For example, are you bundling your insurance policies? Do you belong to an affinity group such as an employer or university that you may get a discount for being a member of? Make sure you are getting any discounts you qualify for. 

When it comes to the annual renewal of your homeowner's insurance policy, sit down and take a good look at the information. Make sure you are paying for enough coverage for your home and belongings. Check the costs and see if there are any adjustments based on costs you want to make to your coverage. Finally, make sure you are getting any discounts you qualify for.  

For more information on homeowners' insurance, contact an insurance company.