Tax Season is a Great Time to Reevaluate Your Homeowners Insurance Policy

With the tax season upon us, it is a great time to reevaluate your Homeowners Insurance Policy. Many homeowners don’t realize this is a task that should be undertaken every year. Below are several reasons for reviewing your insurance.

1. Home Values Change: Several factors affect the value of your home (market trends, improvements, economics). If your home value increases, it is important to update your policy to ensure adequate coverage.
2. Liability Coverage: Check current liability coverage and if it falls below your current net worth, or what you could lose if someone is injured, it should be increased.
3. Disaster Risk: With “once in a lifetime” weather events occurring more frequently in certain areas due to climate change, you may decode there is a need for additional insurance coverage.
4. Renovations & Improvements: Many homeowners make improvements or upgrades to their home. These changes may increase the cost to rebuild in the event of damage/ loss of your home and may need to be updated to reflect current cost to rebuild.
5. Exclusions: Insurance policy exclusions limit a homeowner’s coverage. Annual review allows you to better understand your coverages and adjust as needed. Being prepared is a homeowner’s best defense against losses.

Annual policy reviews safeguard you and your investment against being under-insured at the time of a disaster. If you are preparing for a home sale or want to know the value of your home in today’s market, contact the professional Personal Relocation Managers (PRM’s) at Moving Station to obtain a “no obligation” home valuation review.

Sources: NAR, Realtor.com, Baird & Warner, CBIZ

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