Why Many Homeowners Review Their Home Insurance Policies When Spring Comes?

The US experiences extreme weather all year long; thankfully, spring adds a little balance to the year-round weather whirlwind. According to a report, the country experienced a loss of $165 billion in 2022 due to extreme weather. The majority of that was from property damage because of extreme weather. In some fairly (and unfortunately) common instances, CNBC captured some incidents in which a resident of Ashburn, Virginia, described the damage situation as nothing less than a war zone.

Gonzalez Insurance always advises clients to review their home insurance policies before the weather dramatically changes and what better time than spring to do so?

What To Consider When Reviewing Your Homeowners Policy?

What Coverage Does It Offer?

The actual benefit that the coverage provides is the most crucial factor to think about and examine. Does it cover flood damage or repair costs, and can it assist in paying for any psychological harm one may cause to others? When reviewing and analyzing your current homeowner’s policy, all these considerations are worthwhile. These also become vital if you have a porch, garage, or any other extended area that was not considered when your current policy was finalized.

Is This Coverage Partial?

The extent of the coverage your policy can provide under various circumstances is another issue that needs to be carefully considered. How much of your financial burden can the coverage support, bearing in mind various scenarios like theft, weather damage, break-ins, fire hazards, or property accidents? All of this can be considered when spring-cleaning and reviewing your homeowner’s policy is on your radar.

Does It Insure Expensive Items?

Another consideration about homeowner’s insurance is whether the coverage will assist you in recovering the cost of internal and external damage. For instance, will damage support be provided to replace the expensive items you own, such as jewelry, electronics, sports equipment, etc.? If not, the review cycle might inspire you to reconsider what can be done to protect these valuable items.

Is Any Sort of Liability Covered Too?

Let us use a simple example. Suppose a guest slips and falls on your patio and injures themselves; they file a lawsuit, making you legally responsible for the incident. These kinds of liabilities are at times covered or uncovered by homeowner’s policies, but it would be prudent to double-check and access your current policy to make sure.

Now, it is time to consider the gaps discovered in the process after reviewing your current homeowner’s insurance policy. Better clauses or more add-ons should be proposed for your current policy to protect you against any legal action or financial harm. In the new revival system, it is also possible to cover all of your homes in the US under a single policy if you have multiple residences. However, these properties can only be included in a multi-insurance home policy if they are used for rental purposes.

Let us look at what homeowner’s insurance policies typically do not cover and how these extra add-ons can offer more assistance and mental comfort.

What Can Add-Ons Do for Your General Home Insurance Policy?

Flood Insurance

The US is one of the worst-hit nations when it comes to water-related disasters — whether we are talking about the long-lingering effects of Hurricane Katrina or the more recent Hurricane Ida. The Office for Coastal Management reported that 56 disasters occurred between 2019 and 2021, resulting in over $1 trillion in total damages.

This emphasizes how crucial it is to secure adequate defense against these climatic catastrophes. A great way to prevent any last-minute claim denials is to add flood insurance to the general home insurance policy you apply for. For those who own permanent residences or vacation homes in coastal regions like Florida, New Orleans, Pennsylvania, etc., this becomes even more important.

Umbrella Insurance

Home insurance policies do not protect you from specific occurrences like your children destroying someone’s backyard. The injured party can claim an insurance which becomes your liability, and legal fees for these situations can be very expensive. For such circumstances, umbrella insurance is a perfect add-on that helps you protect your family against such unforeseen situations. Therefore, when you combine this policy with other insurance, it offers not only the payout of the claimed amount but also fully covers the cost of the legal representation.

Valuable Property Insurance

Do you fancy collecting pricey art or amassing a large collection of jewelry that is worth millions? Well, we all fancy one or the other object of such nature. In the event of severe damage, a homeowner’s insurance policy will only cover the cost of repairs or total reconstruction. But what about lost valuables? Thus, it is critical to take extra cover for all those valuable possessions you own.

All in all, it is always your responsibility as a homeowner to ensure that all potentially dangerous appliances are working well in order to prevent any harm or accidents in the home. The home insurance policy does not cover damage brought on by negligence, poor home maintenance, or a natural disaster.

Now comes the part about how much this can cost.

This all depends on the portfolio analysis and risk assessment, which can and should be performed by a reliable source. The premiums are determined based on your prior claim history, location, home condition, etc. Given how important they are to the overall picture of providing extended protection, the add-ons are inexpensive and simple to incorporate.

Interested in giving your insurance plan a makeover this spring? Gonzalez Insurance is the leader in providing the best-in-class solutions for first-rate protection to lessen your financial burden. We are experts in performing an in-depth property valuation. Get in touch with us to get a customized quote for your home insurance policy today.