Insurance… Don’t be Underinsured 7

Many people are always looking for cheap homeowners insurance. However in their haste to find cheap homeowners insurance they often risk the protection they need. Millions of residents in the UK are underinsured. Are you one of them? Now would be a good time to check your homeowners policy to make sure you have adequate coverage on your home. Don’t wait until disaster strikes and you need to file a claim only to find out your home is underinsured. Here are a few questions to ask yourself to ensure your home is properly insured.

 

Have you overlooked valuables in your home?

Many people only cover big ticket valuables in their home such as paintings, jewelry or collectibles. But what about everyday items such as furniture, toys, china or appliances? Many times these items can be just as expensive to replace as other more expensive valuables. The question you need to ask yourself is if your homeowners policy covers these types of items.

If you think you may have listed these types of items at a lower price speak to your insurance agent about it and get a rider to your insurance policy for the true value of all the items in your home.

 

Have you inherited any valuables?

If you have recently inherited any items be sure you contact your insurance agent and have your homeowners policy updated to include those items. Be sure to have items such as watches and jewelry appraised by a jeweler. These types of items can gain value over time so it’s best to have them appraised when you inherit them.

 

Are all the valuables in your home included in your homeowners policy?

Are there items in your basement or attic that you have forgotten about? Be sure and take a look at what you have and add them to your homeowners insurance. Check for items such as old fine china, books, cutlery and even game pieces from old games.

 

Be sure to check your homeowners policy of maximum payout amounts

Many homeowners insurance policies have a maximum payout amount per item. Many times this amount is as much as $1,000. However, if you have high ticket valuables such as art or jewelery this amount may be much less than the actual value of the item. Be sure to consult your insurance agent for a rider to your policy that will override this amount in the case of high value items.

 

What is your insurance company’s definition of contents and buildings?

Every insurance company has a different definition of what is considered “building and contents”. For example one insurance company may consider a freezer and its contents part of the building where another insurance company may consider both as contents. Insurance company’s also vary on the cost to replace contents so be sure you have a clear definition from your insurance company on what they consider buildings and what is considered contents. You will also want to clarify what the coverage limits are for buildings as well since this also varies from one insurance company to another.

 

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