If you have a mortgage, you are probably required to have homeowners insurance. It is also possible that when you took out your policy, you chose the least expensive option you could in order to keep costs down for your new home. However, things change over time, and you may need to revisit your policy to be sure you have the best coverage.
Flood zones change over the years, and your home may now be in an area that qualifies for flood insurance. Therefore, it is important to discuss with your insurance agent any changes to flood zone areas and determine if you need to add the coverage for your home.
When you originally purchased your policy, the value of your home may have been lower, or you may have had fewer valuable household items. New and improved electronics may need to be added to your policy, or you may have accumulated jewelry or other valuables that need coverage. Contact your insurance agent to discuss whether your policy covers the current value of your home and possessions.
There are many coverages available now that may not have been available when you purchased your initial policy. Optional replacement costs coverage allows you to replace items in your home at current market prices rather than reimbursing you for the value of the item that was damaged. For example, your refrigerator may be several years old and only valued at $200, far less than what it would cost you to buy a new one. With this add-on, you would have the funds to purchase a new refrigerator. Loss of use coverage is another optional service that pays your living expenses should your home become unlivable. This coverage often has daily limits as well as limits on how long you can use the service.
Every few years, it is important to review your homeowners policy to be sure your coverage is adequate and to determine if there are updated options available that could give you and your family peace of mind. For more information about homeowners insurance, visit here.
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