Home » Spring Cleaning Your Homeowners Insurance Policies
As the days get longer, the weather gets warmer and the outside becomes brighter, it’s a cathartic time for many of us to do some spring cleaning. Whether you are inside clearing out closets, drawers, and the garage or outside picking up sticks, digging in the dirt, and spreading mulch, remember there are other parts of your life that need spring cleaning too. This includes an insurance policy review and clean-up, and it’s not just a quick dusting. It’s time to dig in.
To get started reviewing your policies, consider these important questions:
Do I have enough insurance to rebuild my home?
If you’re in the habit of mindlessly renewing your policy every year, you may have let the full rebuilding cost get ahead of you. Any major home improvements such as building an addition or an extensive renovation add value to your home. If you haven’t been updating your insurance policy to reflect the increased replacement value of your home, you may only be insured for the current policy limits. You don’t want to find you are underinsured with the limits you have in the event a loss occurs. Take a few minutes with your agent and do some spring cleaning to discuss any changes to your home and make sure it’s insured to value for replacement cost to rebuild.
Have I added any other structures to the property?
During this pandemic, we all are spending more time at home. People have put more emphasis on making their properties more functional to meet their new stay-at-home lifestyle. The may include building that unattached garage or installing an in-ground pool or hardscaping to complete the outside of the property. Notify your insurance agent when other structures are added so you are adequately covered.
Are my expensive belongings covered in case of loss?
When we receive a special gift, it’s easy to get wrapped up in the excitement and forget to call our insurance agent to have it scheduled on our policy. It’s another common area where people find themselves underinsured because of the habit many of us have of just simply letting our policies renew without reviewing it with an insurance professional. While you’re cleaning and organizing everything anyhow, use this time to take inventory of the most valuable items you own and discuss getting them scheduled on your policy so they are covered in case of loss.
Will my homeowner's policy cover my home-based business?
While some of us have always had a home-based side gig, the COVID-19 pandemic gave many more of us the opportunity to launch at-home businesses that perhaps we didn’t have the time or energy for previously. That being said, it may be a good time to take a look at your inventory and equipment. Some homeowner's policies place a limit on how much business property they will cover in case of loss. This means you may want to speak with your agent about adding a business owner's policy to your insurance portfolio depending on the value of the contents.
If you need help answering these questions and more about your personal insurance policies, it’s best to speak to an insurance professional. Contact us to get started so you can feel confident and sleep better at night knowing your family, your valuables, and your home are sufficiently protected.
About Valley Forge Captive Advisors
Valley Forge Captive Advisors is a commercial insurance brokerage and risk management firm specializing in member-owned group captive insurance companies in King of Prussia, PA.