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For most people, their home is their most valuable asset. As a result, having the right home insurance coverage to protect that asset is essential. In order to make sure they have the protection they need, homeowners should make one key insurance move as early as possible in 2022.
Every homeowner should check this insurance task off their to-do list
In 2022, every homeowner should take the time to carefully read over their insurance policies and make sure they have sufficient amounts of coverage in place.
This means looking at the fine print and checking the:
- Policy limits
- Types of property that are covered
- Covered disasters an insurer would pay out for
While it can take a little time to do the technical work of reading over insurance policies, this should be done ASAP this year -- and every year -- in order to make sure the right insurance coverage is in place.
Here's why it's so important to check coverage in 2022
There are a few key reasons why it is important to double check insurance coverage limits and exclusions every year -- but especially this year. Here's what they are.
- Property values are rising: Home values have gone up dramatically, as has the cost of building or repairing a property in the event of a disaster. That's because of the supply chain crisis resulting in a shortage of materials, and changes in the real estate market driven by high demand and a low supply of homes. Homeowners need to make sure they have replacement coverage so they can rebuild their home as it stands if something goes wrong. They should also check their policy limits to make certain they aren't insured for less than their home or property is currently worth or would currently cost to restore. This unprecedented rise in prices and the unusual real estate market are key reasons why checking coverage in 2022 is more important than ever.
- Homeowners change their circumstances: Many people have made changes to their home in recent years as a result of the pandemic. Some people have upgraded or improved their space, for example. Or people may have added new pets to their family. Upgrades, remodeling, or adding a pet can all change the type of insurance protections that should be in place. It's important to make sure coverage matches current circumstances.
- Insurance coverage options may change: Insurers can also sometimes change their prices or the terms of their coverage. It's worth reviewing the policy each year to make sure no modifications are in place that affect either the protections in place or the costs of coverage.
No homeowner wants to be left without the protection they need and end up risking their home or financial stability. With plenty of good reasons why it's so essential to confirm sufficient insurance coverage, take the time ASAP to check your policies. Homeowners who find they are lacking in the necessary coverage should act as quickly as possible to reach out to their insurers and get the right coverage to keep their most valuable asset safe.
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