Reviewing homeowners insurance coverage regularly is one of the most effective ways to ensure adequate protection. Many homeowners purchase a policy and rarely revisit it, even as their home value, belongings, and personal circumstances change.
The review process should begin with the declarations page, which outlines coverage limits, deductibles, endorsements, and premiums. This page provides a snapshot of the policy and highlights key financial details.
Next, homeowners should review dwelling coverage limits. These limits should reflect the current cost to rebuild the home, not the market value. Construction costs can change over time, making periodic updates essential.
Personal property coverage should also be reviewed. Homeowners should assess whether coverage limits align with the value of their belongings and whether high-value items require additional endorsements.
Liability coverage deserves careful attention. Medical costs and legal judgments can be significant, and liability limits that were adequate years ago may no longer be sufficient.
Deductibles should be reviewed to ensure they remain affordable. While higher deductibles lower premiums, they also increase out-of-pocket costs after a loss.
Endorsements and exclusions should be examined closely. Homeowners should confirm that optional coverages address their current risks and that exclusions do not create unintended gaps.
Reviewing homeowners insurance coverage annually or after major life changes helps ensure protection keeps pace with evolving needs.
Related Guides