Is It Time to Review Your Homeowner’s Policy?

If you’re a homeowner, maintaining adequate insurance coverage is essential protection and failing to keep up with it can be a costly mistake. Unfortunately, most people aren’t as diligent in keeping up with their policies. After they sign up for coverage and the initial policy goes into effect, they simply assume they have met their insurance obligations. However, any change you make to your property requires a reevaluation of your insurance needs.

Typically, you should review and update your homeowners insurance Sacramento once per year. However, if you make any changes to your home or make any big ticket purchases, it’s wise to update your policy immediately to ensure those purchases are covered. Whether it’s an addition to your home, a new storage shed, or a big screen TV, you will want to ensure you’re fully covered. There’s no telling when damage or theft will occur, so you should be diligent in getting full coverage for all of your property.

Another way that a homeowner’s policy can fail you is by neglecting to obtain additional coverage for certain acts of nature. For instance, a standard homeowner’s policy in California may not cover you for earthquake damage. This means you will have to add a rider to cover the damages that result from an earthquake. This will ensure you’re fully protected against this specific type of occurrence. Since weather patterns are continuously changing, your area may be affected by acts of nature that weren’t common when you bought your home.

Another reason it’s wise to review your policy annually is that it can refresh your memory as to what coverage you do have. For example, if someone trips and falls on your property, you may have coverage to pay their medical care costs and money to hire an attorney, if the incident results in a lawsuit. If you don’t review your policy from time to time, you may not be aware that you have this coverage. Keeping up with your insurance policy can save you money when you need it the most, which is why it’s important to regularly communicate with your insurance agent.