Most people buy home insurance, set up automatic payments and forget about it. But your home and your life change, and a policy that fit well three years ago may not fit today. Set aside half an hour once a year, ideally a month or two before your renewal date.
1. Find your declarations page
The declarations page is the summary at the front of your policy. It lists your coverage limits, your deductibles and any endorsements (extra coverage added to the standard policy). Keep it next to you for the rest of this check.
2. Check the coverage for the house itself
Dwelling coverage should be based on what it would cost to rebuild your home, which is not the same as its market value. Building costs change, so ask your agent how the rebuild estimate was calculated and whether it still reflects your home.
- Have you renovated, added a room, a deck or a new roof?
- Have you upgraded the kitchen, bathrooms, heating or wiring?
- Did you add a pool, a fence or an outbuilding?
3. Look at your belongings
Walk through your home and think about what it would cost to replace your things. Jewellery, art, collections and expensive electronics often have lower limits in a standard policy and may need to be listed separately. A quick video of each room, saved somewhere outside the house, makes a future claim much easier.
4. Review liability and deductibles
Personal liability helps if someone is injured on your property or you accidentally damage someone else’s. If your savings or income have grown, ask whether your limit is still enough, or whether an umbrella policy makes sense. A higher deductible usually lowers the premium, but only choose one you could comfortably pay on short notice.
5. Ask what is not covered
Standard home policies usually exclude some risks, such as flood and earthquake, which need separate coverage. Ask your agent which risks apply where you live and what your options are.
Finally, tell your agent about any changes in your household: a new dog, a home business, a lodger or a teenager learning to drive. Small details can affect what your policy covers.