Here are three situations where you should reevaluate your insurance policy.

Too often, people only think about homeowners insurance when they’re buying a home. Many treat it as a “set it and forget it” type of thing, but nothing could be further from the truth. You need to regularly reevaluate if you have the proper coverage on your home. Here are four key areas you should evaluate:

1. After major improvements or updates. When you complete one of these, you’re automatically adding equity and value to your home. If you don’t revisit how much coverage you have, you could be under-protected in the event of a disaster.

You want to have replacement value coverage if possible.

2. Replacement cost vs. actual cash value. Which of these does your policy cover? Actual cash value is the value after depreciation. Depreciation brings down value when talking about insurance. Make sure you have replacement value coverage so that you’re fully protected.

3. Umbrella policy. This can be great for covering exclusions in your regular policy, or picking up coverage where your previous policy stops. You can never be too safe when it comes to your home’s coverage.

4. Evaluate your deductibles. When comparing and contrasting different coverages, people often don’t look at the fine print. If a catastrophic event happens, your deductible can become a really big deal.

If you’re a homeowner, ask yourself when was the last time you evaluated your homeowners insurance. Do you have proper coverage? We’re here to be a resource for you, so if you have any questions, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.