Spring-Clean Your Insurance Policy: Are All Your Valuables Covered?

It’s the beginning of a new year – and a great time to take a good look at your homeowners insurance policy. Doing so could help you answer questions like these:

• If we upgrade our home security system, how much could it save us on our homeowners insurance premium?

• We bought new living room furniture, and it’s comparable to what we had before (maybe a little nicer). Do we really need to update our insurance because of this?

• What about the diamond earrings I bought my wife over the holidays? How much will it cost to insure those?

• We had some unexpected costs last year and had to dip into our savings. We'd like to avoid doing the same this year. Will changing our deductibles help?

• Our children are off to college now – does this make a difference on our home insurance?

Annual Home Insurance Review: How to Do It

Reviewing your homeowners insurance policy each year can ensure the protections you're paying for remain relevant to you, especially as your needs and lifestyle change over time. You'll have to renew your policy each year anyway – so, it’s important to do so mindfully. Here's the step-by-step to an annual homeowners insurance review:

1. Know Your Policy

Every homeowners insurance policy is different, so make sure you understand what’s in your policy. For example, what protections (coverages) are you currently paying for? What are the payout limits for each? How much did you pay for your annual premium last year? What are your deductibles?

What you should know about your deductibles: The two main deductibles are for hurricane-caused damage and for all-other-perils (AOP), which covers many other types of damages. At Florida Peninsula Insurance Company, your hurricane deductible options are 2%, 5%, or 10% of the limit you’ve insured your house for (under the Coverage A Dwelling section of your policy). And your all-other-perils (AOP) deductible options are $500, $1,000, or $2,500. Other deductibles may also apply, depending on what’s in your homeowners insurance policy.

2. What’s Changed in the Past Year?

Make a list of what’s new or different since your last policy renewal. It should include changes surrounding:

• Your home – This includes any upgrades, additions, or renovations, no matter how big or small. It could be redoing a kitchen or bathroom, expanding a deck, adding a jacuzzi, or replacing worn doors and windows. Failing to account for these at renewal can lead to you being underinsured, which could cost you tens of thousands of dollars – or more – when disaster strikes. Or you may miss out on a benefit: changes made to bolster the resilience of your roof and windows, or to update your plumbing/electrical systems may make you eligible for a reduced premium!

• Your belongings – Have you added or gotten rid of any big-ticket items? This includes the usual suspects (jewelry, electronics, art) as well as those valuables often overlooked (designer clothing, collectibles, antiques).

• Your lifestyle – Do you have a home-based business or are you renting out a portion of your home? Are you in the process of a life-changing event, such as marriage, divorce, new baby, or children moving in or out of the home? All can impact your policy decisions.

• Your net worth – Has it changed significantly or are you expecting a windfall? You may want to increase your personal liability limits.

• Your risk of being sued – Are you hosting more at-home parties or get-togethers? Do you have a pool, trampoline, or other circumstance increasing the risk others might be injured on your property? Increasing your personal liability limits can protect your assets in the event you’re sued.

What you should know about your personal property: It can be incredibly difficult and costly to start over and have to repurchase new belongings if yours are damaged in a fire, storm, lightning strike, or other covered event. Creating a home inventory is definitely worth the effort for just this reason. A home inventory can help prove ownership and value of all you own – and may speed up the claims process. 

3. Increase/Decrease Coverage Limits

Depending what you discover during step 2 above, you may want to increase or decrease the payout limits on your personal property. The following are the most common ways you can customize the protection of your belongings and more:

• Special packages – At Florida Peninsula Insurance Company, we offer Plus, Gold, and Platinum special packages allowing you to increase payout limits for personal property, personal liability, medical payments to others, and more.

• Scheduled personal property coverage – This increases personal property limits to cover specific high-value belongings.

• Choose “replacement cost” for your belongings – Doing this allows you to purchase brand-new items to replace damaged/stolen ones after a covered loss. Otherwise, you’ll be reimbursed for each item based on its current depreciated value. 

4. Consider New Protections

In some cases, you may want to include new or additional coverage to your homeowners insurance policy – again, depending on what your list looks like after step 2 above. This includes considering insurance products such as:

• Flood insurance – This is rarely a part of your homeowner’s policy; it’s usually sold separately. If not available from a private market insurance carrier, try FEMA’s National Flood Insurance program.

• Golf cart coverage – At Florida Peninsula Insurance Company, we offer coverage up to $5,000.

• Screened enclosure – At Florida Peninsula Insurance Company, we offer coverage in amounts from $10,000 to $50,000.

• Animal liability coverage – This protects you when you’re sued after, say, your dog bites a neighbor in the street, or a guest in your home.

• Equipment breakdown – Say goodbye to costly utility service contracts, and protect the major appliances and equipment in your home. 

• Sinkhole coverage – An inspection is required for this specialized coverage and certain restrictions apply. Catastrophic Ground Cover Collapse is always included.

• Limited fungus/rot/yeast/bacteria protection – This protects the personal property damaged and/or bodily injury occurring due to these causes.

• Identity theft protection – When you’re a victim of identity theft fraud, this coverage helps you fix your credit and restore your good name. 

5. Calendar It

Note the date your policy renews and set a reminder for yourself at least a month beforehand to consult your Florida Peninsula insurance agent to discuss potential changes you’ll need to make before it renews. Also, don’t forget to ask your agent what additional discounts or savings opportunities you may be eligible for! Simply bundling coverages with one company could save you money.

6. Fund It

Consider starting an emergency fund to cover repairs to the home. Depending on your deductible amounts (as well as the expected repair cost), you may want to use this fund instead of submitting a claim against your insurance policy. It could also be used to pay a large deductible in the event of a big loss, or for seasonal maintenance and upkeep. Setting aside a nominal amount each month for these costs allows you to be prepared when the unexpected occurs.

Is All Your Personal Property Covered by Your Homeowners Insurance? 

Your homeowners insurance options are ever-changing. And it’s a good thing, too, because what we own is constantly changing as well. By taking the time to review your home and personal property needs each year with your Florida Peninsula insurance agent, you’ll be in the best position when the worst case scenario happens. Get off to a good start in 2024 by reviewing your home insurance policy now.

If you’re not already insured by Florida Peninsula Insurance Company, there are numerous reasons why you should be. We’re one of the largest and most financially stable Florida-based insurance carriers you’ll find; we provide fast, fair, and friendly claims handling; and we’ve been the trusted choice for Florida homeowners since 2005. To get started, simply get your quote online