Why Should I Review My Home Insurance Policy?

If your home insurance premium is through the roof, you may be able to do something about it. Home insurance prices jumped 19%, or on average $273 per policy, last year. More homeowners than ever are planning to shop around for better value in coverage than they have now. 

Mylo’s expert advisors use patented insurance intelligence technology that helps homeowners shop multiple carriers to save time and find the best combination of coverage + price. 

For those looking to make a change, here are answers to commonly asked policy questions and tips on how to save money with your homeowners policy review.

When should someone review their insurance policy?

• We recommend you review all of your insurance coverage at least once a year.

• Your home insurance carrier is required to send you a Conditional Renewal Notice (usually through snail mail) 30-45 days before your current policy expires that details any changes they’ll be making to coverage or pricing if you renew.

• It’s important to look over any changes (see below). And even if your policy stays the same, you’ll want to make sure your coverage still meets your current needs – and you have the best available value.

How can someone save money with their homeowners policy review?

• Homeowners can save money by asking a broker to try to beat their current policy and provide the coverage they need at a better rate. We recommend getting an expert coverage recommendation and then comparing quotes from multiple carriers instead of letting your policy automatically renew.

• Because of today’s challenging economy, many carriers are cutting costs by making adjustments in policies that are about to be renewed. Look for higher premiums, higher deductibles, new limits (you may be asked to accept lower payouts for covered risks if you have to make a claim), new exclusions (you may be asked to give up coverage for specific risks or types of damage that were covered before) and removal of add-ons (you may have to pay extra for various coverages or services that were part of your package before).

What should be on an insurance policy review checklist?

• Make sure you’re covered for “full replacement cost” and not “actual cash value.” A replacement cost policy helps pay to repair or replace damaged property without deducting for depreciation. The second subtracts depreciation first and may not provide enough money to actually replace damaged property.

• If you live in a flood-prone area, be aware your property insurance most likely won’t cover water damage that doesn’t come from inside your home – like a leak from a broken pipe. You may want to add a separate flood insurance policy to prepare for extreme weather.

• Make sure you have the right coverage levels to reflect any changes you may have made since you purchased your policy – such as additions to your house, new valuables or new family members.

Watch for these reductions in coverage your carrier might make:

• Reduced coverage for water backup (such as from a sump pump) that could flood your basement and require expensive servicing and repairs.

• Reduced coverage for roofs and siding: You may have been insured at full replacement value for damages to your roof and siding – but now only eligible for a payout for partial fixes.

• Removal or reduction of jewelry coverage: The valuables you thought were fully insured may have new payout limits if they’re lost or stolen – or may not be covered at all.

For more fast facts about home insurance, visit: choosemylo.com/home/home-insurance

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