As the twin challenges of COVID-19 and inflation continue to impact prices across various sectors, ensuring proper protection for your property has never been more critical. The surge in costs, from lumber to labor, highlights the importance of having adequate insurance coverage in place to safeguard against unforeseen events such as fire, flood, hail, or any other uncontrollable circumstances.
Insurance experts, like John Schaeffer from Source Center Insurance, emphasize the necessity of staying informed about your coverage, whether you’re a potential or existing policyholder. Schaeffer advises reaching out to your insurance agent for a comprehensive policy review, ensuring that you understand the scope of your coverage and that you’re not missing any essential aspects.
“In this current period, with inflation on the rise, we’re seeing renewal rates increase substantially, often ranging from $10,000 to $50,000 for reconstruction costs,” Schaeffer shared. Given these significant changes, it’s recommended that homeowners reevaluate their insurance policies at least once a year.
Several key life events should prompt a review of your homeowner’s insurance. Notably, acquiring valuable items such as firearms, wedding rings, or other expensive assets should trigger a reassessment. Major life milestones like marriage or having children should also prompt a review of your insurance coverage. Furthermore, any home renovations or additions warrant a thorough evaluation of your policy to ensure adequate protection.
Jessica Rivera, a homeowner who transformed her one-bedroom house into a spacious three-bedroom, three-bath dwelling, attests to the value of periodic insurance reviews. “With everything going up, material costs could increase significantly. If you stick with the same insurance plan you had, it might not cover the new costs, potentially leaving gaps in coverage. I highly recommend reevaluating your policy,” Rivera emphasized.
Rivera’s home has appreciated threefold in value since she purchased it almost eight years ago, making her acutely aware of the need to assess her insurance coverage regularly.
Schaeffer underscores the importance of proactively reaching out to your insurance agent for a policy assessment. Making necessary adjustments now, based on your current circumstances and any recent changes, can save you from unexpectedly high costs down the line.
In this era of rising prices and economic uncertainty, a comprehensive and up-to-date homeowners insurance policy provides peace of mind and financial protection. Reevaluating your coverage at least once a year ensures that you’re prepared for whatever challenges may come your way, safeguarding your most valuable assets in the face of changing circumstances.