Homeowners insurance checkup

An insurance checkup is a periodic review of your coverage to make sure that you have the appropriate coverage in place. An annual checkup can help to avoid surprises after a loss occurs. You should check your policy annually, at renewal time for instance, or when you have a significant change in the value of your home or belongings.

Below are some questions that you can ask yourself or your agent:

Is the coverage on my home adequate?
If there is reason to believe the value of your home has increased (maybe you built an addition or made substantial upgrades, for instance) or maybe the cost to rebuild your home has increased due to construction costs. The market value of your home can be an indicator that the cost to replace may have increased, but keep in mind that insurance is based on "replacement cost" not market value.

Is the coverage on my home’s "contents" adequate?
Some examples to consider, if you receive an inheritance or valuable gifts, maybe a new computer or large appliances, that new flat screen television. Remember to be conscious of any thing that you purchase increasing the value of what is in your house.

Do I have "replacement cost" or "actual cash value" coverage on my dwelling? On my contents?
Replacement cost is what it would cost to completely replace your house or any part of it, or replace your belongings with new items of "like kind and quality" without deduction for depreciation. Remember that rebuilding your home could cost more or less than the "market value" of your house.

Some policies provide 100 percent coverage on replacement costs and others can provide up to 200 percent. Be sure you know what you have. Actual Cash Value (ACV) is the cost to repair or replace the damaged property with materials of like kind and quality, less depreciation of the damaged property.

Do I have or need "Inflation Guard" protection?
Many homeowners’ insurance policies issued today provide this coverage automatically, but you should check to see if it applies to your policy or not. It is helpful for most homeowners because we do not typically watch inflation and building cost to assure that we are insured adequately. By having this coverage the insurance company raises your coverage every year based upon inflation.

Do I have or need special coverage for other structures, jewelry, firearms, furs, art and computers?
Most homeowner policies provide some basic, limited coverage for these items. However, depending on the amount and value of your property, you may have a need to purchase an additional amount of coverage. Other structures can include, but not limited to, a detached garage, storage shed, gazebo - anything that is something built on your property that is not attached to your house. The coverage that comes with your policy for other structures is typically 10 percent of your dwelling coverage. Add the total value of all of your other structures and that is the coverage that you need.

Do I need to appraise any of my belongings?
It is a good idea to have valuable items appraised, especially if they can not easily be replaced, for example, antiques, jewelry, coins and artwork. With an appraisal, your agent can more accurately evaluate whether your contents are adequately insured. It is also helpful to maintain a list naming your items and providing a brief description in the event of a loss. Taking photos of your personal property is also a good practice.

In the end the bit of extra effort to assure that you are properly insured can save you in the event of a loss.

AAA Central Penn Insurance Offices

3433 Trindle Road, Camp Hill 717-763-6463

701C S. West Street, Carlisle 717-243-0169

2301 Paxton Church Road Harrisburg 717-657-1027

1142 Mae Street, Hershey 717-534-1695

804 Estelle Drive, Lancaster 717-898-6910

101 W. James Street, Lancaster 717-397-6517

727 S. Broad Street, Lititz 717-626-3046