As the new year begins, it makes me think of new beginnings. New vacations to plan, new things to buy, new resolutions to make. Not what about your insurance? Many people don’t make changes to their insurance this time of year, unless they are buying or selling assets. But why is checking your insurance so important in the new year?
Checking your insurance policies is important because of what might have happened over the holidays. Did you finally get that new piece of jewelry you have been asking for? Or new cabinets installed? What about a new car? All these items trigger changes to your insurance, so it is important to consider making a home inventory list each year.
Creating a home inventory list helps categorize and organize your personal belongings. The process involves taking inventory of each room or collection in your home. Be sure to add a description of each item as well as any make, model, serial numbers, or copies of receipts that correspond with the them. If an item has had a previous evaluation or appraisal, make sure to include that in the home inventory list too.
For jewelry and other smaller items, check to see if you currently have a scheduled personal property policy in place. You can either add this coverage to your homeowners or renters policy, or as a separate policy. Other small items can include stamps, silverware, or golf clubs. These items can be capped at a certain limit of coverage on your homeowners policy, so making sure those values are documented is important!
While documenting items in your home is important for making yearly insurance adjustments, any upgrades and costs associated with home remodel need to be considered too. Upgrades and renovations like replacing old flooring, remodeling a kitchen or bath, or a room addition all need to be documented with your insurance agent so your coverage can be adjusted. Making sure your dwelling coverage reflects changes to your home is important to guarantee replacement from your insurance company. Home upgrades add value, and that increase in property value should be covered by insurance.
Having peace of mind that your items will be replaced if necessary is an important part of the insurance process. Following these guidelines will ensure a smooth recovery process of assets limiting any issues with claim payout. As you create this home inventory list, make sure to send to your insurance agent to keep on file as well during the claim process. Always remember, your insurance agent is here to make sure you have the best coverage you can get!
Alexandra Lysik is a licensed Property and Casualty Insurance Agent in North Carolina and South Carolina. Her independent insurance agency, Cavik Insurance, helps people save money and receive free insurance reviews to make sure they have the right coverage for auto, home, condo, umbrella, boat and all lines of commercial insurance. For more information visit www.cavikinsurance.com.
