Many people think home insurance is a one-time purchase that doesn’t need to be reviewed once it’s in place. However, you should regularly reviewing your policy to make sure you have enough coverage because your home, purchases, lifestyle, and risks change over time. This article explains why an annual review of your home insurance policy here in the Tri-Cities is important, what to look for, and how to make adjustments to maintain enough protection.

1. Why an Annual Review Matters

Your home insurance needs can change over time because of various factors such as improvements you’ve made to your house, your home’s value, and other local risks. An annual policy review helps you identify changes that need to be made.

Key Reasons for an Annual Review:

• Home Improvements: Renovations or additions, like a remodeled kitchen or a new deck increases your home’s value.
• New Possessions: Big purchases, such as high-value electronics or jewelry, is something that may require additional insurance.
• Local Risks: New risks, such as flooding or wildfires that may becoming more prevalent in your area.
• Market Value: In case you haven’t noticed, home values in Kennewick, Pasco, and Richland continue to grow. Your home is probably worth more than when you bought it even if you haven’t made any improvements.

Pro Tip: Set a calendar reminder in your phone or on your computer to conduct a review for your home owners’s insurance with your local insurance agent. Personally, we do business with Adam Hoover at Country Financial Services if you are looking for a recommendation: (https://advisors.countryfinancial.com/usa/wa/kennewick/adam-hoover)

2. What to Review in Your Policy

When reviewing your home insurance policy, focus on these areas:

Areas to Review with your insurance agent:

• Coverage Limits: Check if the coverage and personal property limits are sufficient to cover today’s replacement costs.
• Deductibles: Confirm that your deductible still aligns with your financial situation. A higher deductible can reduce premiums, but ensure it’s affordable in case you do need to make a claim.
• Endorsements and Riders: Verify any additional coverage you’ve added, such as flood insurance, earthquake coverage, or high-value item riders (for that jewelry, big electronics, and those toys in the garage).
• Liability Coverage: Make sure your liability limits are adequate to protect against potential lawsuits if someone is injured on your property. This is something most people don’t think about it. We have a pool, so having an umbrella policy is a good idea in case someone gets injured or worse!

Safety Tip: Keep a record of any changes or major life events throughout the year that may impact your coverage needs. Sometimes just scrolling back through your Facebook or Instagram feed will remind you of those important things that happened in the past that you may need to take into consideration with your home owner’s insurance.

3. Evaluate Potential Coverage Gaps

One of the main reasons for a policy review is to identify and address any potential gaps in coverage.

Common Gaps to Check:

• Flood and Water Damage: Standard policies do not cover flooding, so consider adding a separate flood policy if needed.
• Replacement Cost vs. Actual Cash Value (ACV): Ensure that your policy uses replacement cost coverage rather than ACV, which factors in depreciation.
• Sewer Backup and Water Backup Endorsements: These endorsements cover damage from water backup incidents and are not typically included in standard policies.

Expert Tip: Consult with your insurance provider to understand the details of any potential coverage gaps and how to fill them.

4. Make Necessary Adjustments

After reviewing your policy, make the necessary changes to ensure your coverage meets your current needs.

Adjustments to Consider:

• Increase Coverage Limits: If your home has increased in value due to renovations or market changes, adjust the dwelling coverage limit.
• Add Endorsements: Include coverage for new risks such as high-value items, home-based businesses, or weather-related risks. We call them “Tri-Cities hurricanes.”
• Update Personal Property Inventory: Maintain an updated home inventory to ensure your personal property coverage is adequate. Even just taking a video when you walk through the house works to document all your furniture and personal belongings.

Pro Tip: Use a home inventory app to keep track of your possessions and update it after big purchases or renovations.

5. Consult with an Insurance Agent

While you can review your policy on your own, we highly recommend consulting with an insurance agent can provide valuable insights and guidance.

Benefits of Consulting an Agent:

• Personalized Recommendations: An agent can provide tailored advice based on changes in your home, lifestyle, or local risk factors.
• Policy Comparisons: They can help you compare your current policy with new offers to ensure you’re getting the best coverage and rates.
• Clarity on Exclusions: An agent can explain exclusions in detail and recommend endorsements to cover specific risks or personal items.

Actionable Step: Schedule an annual policy review with your insurance agent to discuss your coverage and any updates needed.

6. Save on Premiums While Reviewing

An annual review is also an opportunity to explore ways to save on premiums without sacrificing coverage.

Cost-Saving Tips:

• Bundle Policies: Combine your home and auto insurance for discounts.
• Improve Home Safety: Installing safety features like security systems or storm-resistant windows may qualify you for premium discounts. Ask your insurance agent about things you can do to lower your premiums. Perhaps getting your dryer vent cleaned annually will help.
• Loyalty and Claims-Free Discounts: Ask your provider about any loyalty discounts or rewards for maintaining a claims-free history.

Product Recommendation: Consider installing a smart home security system that includes smoke detectors, water leak sensors, and cameras for enhanced protection and potential premium savings.

Conclusion

An annual review of your home insurance policy is an important part of maintaining comprehensive coverage and protecting your assets. By reviewing your coverage limits, identifying potential gaps, making necessary adjustments, and consulting with an insurance agent, you can ensure your home is protected against unexpected events. Dryer Fire Fighters recommends all homeowners stay proactive with their insurance policies to maintain peace of mind and safeguard their Tri-Cities homes effectively.