End of Year Checklist for Homeowners Insurance

Naturally, we contemplate a new and better start each year; most of us celebrate New Year’s Eve and hope for a great New Year beginning with the very next day.  As we reflect on our past and prior accomplishments, we may forget about general risk assessment and making sure that our home insurance is kept current and in tune with changes that may be necessary to properly cover our home, personal property and liability interests. The following checklist will help you through a quick review so that you can ring in the new year knowing that you’re all prepared for the coming year.

1.  Keep a home inventory list. For ages, we have recommended taking 2 diagonally opposed digitals photos of each room, preferably exposing all open drawers, closets and cupboards, these photos are free to take, simple to store online and EXTREMELY helpful when you need to make a list of your personal belongings in each room at the time of claim.   It is wise to keep a list of valuable items and any available receipts of high-ticket items in a safe place.  It may be a good idea to take inventory of the appliances, computers, electronics, housewares, clothing, bicycles and toys, jewelry, and any other valuable objects; this would be both for you and your insurance carrier at the time of need.
2. Check your policy limits. Each home insurance policy has a coverage limit for personal property, followed by sub-limits for more specific items such as:  Jewelry, Silverware, Furs, Guns, Cash etc…  It is important to know these limits and make sure that you are confident that at the time of claim, the limits are sufficient.  At the time of loss, the insurance company will merely adjust your claim according to coverage in force and there will be no further communication regarding what you should have done prior to the claim – this is the time to make sure you’re properly covered.
3. Be sure to maintain the home. Insurance companies offer home insurance policies for the sudden and accidental losses covered on your policy, professionally known as ‘perils insured against’.   Wear and Tear, Termites, Wood Rot, Wet Rot and similar occurrences happen over a longer period of time and are NOT accidental.  Homeowners are expected to maintain their homes on an ongoing basis; your home needs regular maintenance checks for your heating and cooling, roof, plumbing, and electrical systems.  A homeowner who understands the home’s systems is always more likely to prevent a mishap simply by maintaining the home.
4. Recall renovations, home improvements, and new security measures. When replacing a roof, a heating system or major electrical upgrade, it is always a great idea to let your insurance company know.  Most insurance carriers have discounts for new systems installed on homes.  By the same token, if an upgrade includes adding square footage, your insurance coverage may need to be upgraded to make sure you have sufficient coverage.  When it comes to safety measures, smoke detectors, alarm system, or dead-bolt locks can also save your money on your policy.
5. Trim landscape hazards. Homeowners are expected to make sure that there is no dry brush surrounding the property; if trees are trimmed and surrounding areas are clean of any debris, you would reduce the risk of natural fire catalysts.  Trees with limbs leaning over the home are especially hazardous to the roof of the home; all trees should be trimmed to expose the sky when one would around the perimeter of the home looking upward.
6. Understand your policy thoroughly. It’s essential that you fully understand the coverage which protects your home, personal belongings, and your liability interest prior to a claim occurrence.  If you need assistance with the review of your policy or further assistance with building your inventory list, never avoid reaching out to your insurance staff for help.  The majority of the employees in the industry are not sales people and are simply paid to offer support to the insured customer base.

In preparation for the coming year, invest a small portion of your busy holiday season to review your homeowners insurance policy which will prove to be the perfect gift if needed in the coming New Year!