Like a lot of things in the modern world, homeowner’s insurance looks very different from how it did just several years ago. Not only does this refer to the policy inclusions, but it also refers to the rates and what to expect when the time comes to renew. If you are getting ready to renew your policy, there are a few details you’ll want to double-check so that you are renewing your policy in full confidence of getting the best deal for the best coverage.
Standard policies are not as “full coverage” as you might think
Back in the day, there was an assumption that standard homeowner’s insurance policies covered everything. This may or may not have been true then, depending on who you asked then, but it definitely is not true now.
In fact, a basic homeowner’s policy covers less than many people realize. You will often need extra coverage for damage caused by hail, windstorms, hurricanes, floods, storm surge, and even classic water damage. Don’t panic, however. You can get separate policies or endorsements for each of these so that you get the coverage you need.
The rules are stricter
There will be certain ZIP codes and general areas that are going to be considered higher risk than others. In the past, homes could still enjoy proper protection even if the rates were slightly higher. Now, however, certain areas will have a harder time getting full coverage at an affordable rate. Deductibles are increasing, and certain areas of coverage aren’t offered in specific areas if the risk is considered too high.
Rates are climbing — fast
Speaking of rates, you’ll also find that rates in general for homeowner’s policies are increasing. As everything gets more expensive, and as the rapidly changing climate generates strong, “100-year” storms, it’s getting more and more expensive to repair your home. This, in turn, means that insurance rates are going up across the board and will continue to do so. This is something that you’ll need to factor in and budget for when your renewal date comes up.
Top questions to ask your agent
If you want ot prepare yourself as best you can, you’ll want to use the following questions as your launchpad so that you can understand the essentials about your homeowner’s policy and where your coverage starts and ends. These include the following:
- Can I expect a change in my deductibles in my homeowner’s policy?
- Is my home’s rebuild or replacement cost still accurate in my policy? If not, how do, and should, I change that?
- Do I have an endorsement for hail, windstorm, hurricane, storm surge, etc., on my policy?
- How do I know what endorsements I am eligible for?
Local knows best
Before you hit the renew button for your policy, check in with your local Farmers agent. Whether you are simply renewing an existing policy, adjusting your coverage, or even looking at coverage for the first time, your Farmers agent, like Paula Smith Insurance, can help guide you in the best direction for your home’s protection. Contact us at (281) 488-8880 for a Free Quote.