- If you haven’t already done so, take inventory and make a record of all your possessions. If you already have an inventory, make sure to update it.
- Compare your insurance coverage with the value of your possessions today.
- Have you made any major purchases recently?
- Has your property decreased in value?
- Have you done some downsizing?
All of these things are good reasons to consider increasing or decreasing your coverage.
- Find out if your insurer automatically increases your policy limit annually to reflect inflation. The increased limit may not be necessary, if you determine that your coverage requirements have decreased.
- Don’t include the market price of the land in the total insured value of your home. Your insured property does not include the underlying land. Your home should be insured for the replacement cost (what it would cost to rebuild). Otherwise, you could be paying higher premiums for nothing.