The cost of homeownership includes two annual bills – property taxes and insurance. You can’t do much about the one that comes from the Assessor’s office, but you do have some control over the costs and coverages of your homeowner’s insurance policy.
It is important to give your policy an annual review, particularly if you made changes to your home during the past year.
Most policies have “guaranteed replacement value” which assures that your property would be rebuilt in the event of a disaster, no matter what the cost.
Estimates to rebuild should be based on current construction costs in your area adjusted to account for the features of your home. If you completed any renovations in 2019, especially any high-end kitchen or bath upgrades, let your insurance company know to make sure you are not underinsured.
If you bought anything of significant value recently, you may want to change your coverage amount on contents and personal property. New furniture, computer or audio components, jewelry or artwork may warrant a boost in coverage.
Adding an endorsement to the basic homeowner’s policy provides a way to insure high priced possessions. Jewelry, furs, antiques and collectibles might require a formal appraisal to establish value in the event of loss.
Personal liability insurance covers you for claims made by others injured or damaged while in your home. This coverage is not required but could be a good idea, especially if you have a swimming pool, or often have house guests, babysitters, or workers who spend time at your property.
Ask about discounts. If you have smoke detectors and alarms, interior sprinkler systems, home security systems, or smart home technology to alert you of a fire or burglary, you could be eligible for a protective policy discount.
New plumbing or roof replacement in the last 10 years might qualify for a reduction in premiums. Some insurance carriers allow you to save up to 5 percent if your home is certified ‘green’ by the Leadership Energy and Environmental Design (LEED) organization.
If you haven’t already done so, create a home inventory with a written list of possessions, photographs or videos of your home and contents. Create a digital record of the inventory or store in a fireproof box at a relative’s house or safe deposit box. You’ll sleep a lot better knowing your property is well protected.
Adriana Donofrio deasypennerpodley Glendora (626) 926-9700 adonofrio@dppre.com
