The right homeowners insurance policy is imperative for providing financial protection against damages. However, your current insurance needs may not match your current policy’s coverage, leading to a coverage gap. Due to a change in home value, job status, or even environmental factors, you may need to review and amend your current policy.
Conducting an annual insurance policy review helps homeowners check their coverage needs and make the necessary adjustments. If you have homeowners insurance in Illinois, this blog will help you assess your risk factors to understand why annual policy reviews are important, avoid common mistakes, and make sure your policy has the coverage you need.
Why An Annual Homeowner Insurance Review Is A Smart Financial Decision
Annual Illinois homeowners insurance reviews help homeowners assess their needs based on their current conditions. Since the time you bought your homeowner’s insurance policy, your insurance needs may have changed for a number of reasons, including:
- Changes in personal circumstances, such as new residents, new health requirements, new employment status, or new life insurance coverage
- Adjustments in property value and assets, such as new property additions, renovations, or valuable home furnishings
- Environmental changes such as shifts in weather patterns, new construction, or landscape changes
- Updates in coverage requirements, such as changes in environmental damage coverage or new coverage minimums
Annual insurance reviews help you stay aware of relevant changes to your coverage needs to make sure your home and belongings stay protected at their current value, not the value they were when you bought the policy.
Identifying Coverage Gaps In Your Homeowners Insurance
While homeowners insurance in Illinois usually covers weather damage and theft, many homeowners overlook common coverage gaps. These include:
- Valuable property: Despite offering coverage for belongings, most policies impose dollar value limits on items. High-value items like jewelry, silverware, and other valuables need additional coverage.
- Flood coverage: Water damage and flood damage are not usually covered in the same policy. Re-evaluate your flood risk as part of your insurance review to learn if you should buy additional coverage.
- New structures: Adding new structures on the property, such as garages, sheds, or outbuildings, could change your coverage needs. Policies often provide 10% of the policy limit to cover new structures, but this may not be enough.
- Liability limit: Policies may provide limited coverage for liabilities such as injuries sustained by visitors, but you may consider additional coverage in your situation.
Assessing Risk Factors For Your Home
An annual policy review allows you to reassess your risk factors and determine if any of these coverage gaps have changed. For example, local weather patterns may have changed, placing your property at a higher flood risk.
Changes to your home and environment are not the only risk factors you should consider. Personal lifestyle factors such as a change in mobility could impact your injury risk level, which may require additional coverage.
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Understanding Policy Changes In Your Homeowners Insurance
Changes to the policy itself may also affect your current coverage. Regulatory updates by the Illinois Department of Insurance, such as a change in minimum coverage based on your new property value, could impact the policy you need.
Your policy provider may also offer new riders or require new coverage minimums. Any changes in terms and conditions that could impact your coverage status must be reviewed.
Maximizing Discounts and Savings In Your Homeowners Insurance
Insurance discounts may help you get extra savings on your new policy. Buying a home and auto bundle, remaining claims-free for a certain number of years, or having seniors or military service members living at the house could make you eligible for new savings.
Millions of homeowners leave discounts on the table without realizing that they qualify for savings, often because they did not qualify when they first bought the policy.
What Should I Ask My Homeowners Insurance Agent?
To conduct an effective review, homeowners should follow these simple steps:
- Organize necessary documents: These include your current policy, receipts for renovations and additions, valuations of property, auto insurance, life insurance, and anything else relevant to your home revaluation.
- Review questions: Think about the questions you want to ask your claims professional about your policy, including how recent additions to your house, your other insurance policies, or your lifestyle changes will impact your coverage needs.
- Consult with an insurance professional: A professional experienced in Illinois homeowners insurance can help you review your coverage and learn how to update your policy.
Common Mistakes to Avoid When Reviewing Your Homeowners Insurance
Many homeowners make mistakes when reviewing their policy coverage each year. They overlook small policy details that change their eligibility for certain coverage or miss valuable discounts for which they qualify.
Another common mistake is to avoid reviewing the policy updates, potential savings, and coverage changes altogether by delaying policy reviews. The annual review process helps you stay aware of any policy changes so you can make the necessary adjustments to your coverage.
Secure Your Home with Homeowner Insurance from Pro Insurance Group
Our team of insurance professionals at Pro Insurance Group can help you review your homeowners insurance coverage in Illinois. Based on your situation, we customize your policy update plan, taking advantage of discounts and savings you might have missed while making sure that your house meets your insurance provider’s updated coverage minimums.
Schedule your annual home insurance review with Pro Insurance Group to make sure you have the coverage you need when you need it most.