Spring Homeowners Insurance: 4 Ways To “Spring Clean” Your Policy

While everyone knows spring is the perfect time to catch up on tidying, decluttering, and cleaning those oft-forgotten corners of your home, it’s also the perfect time to review your homeowners insurance policy.

Conducting a spring homeowners insurance review is the best way to check all the boxes on your spring cleaning checklist. Let’s look at the four most important components of your home insurance policy to review once the promise of warmer weather approaches.

The first and likely most important step of a seasonal insurance review is revisiting the coverage limits and deductibles your current policy holds. The main thing you may want to look out for is that you aren’t underinsured. Homeowners can have a tendency to underinsure themselves by simply overlooking changes they’ve made or gone through throughout the past year.

For example, if you’ve remodeled your kitchen since your last renewal, you may want to increase your personal property coverage (Coverage C) and your dwelling coverage (Coverage A). During the remodel, if you updated your ancient relic of a refrigerator to one of the newer, stainless steel models on the market, you may want to increase your Coverage C limit to cover the cost to replace this new appliance should a named peril on your policy damage it.

Similarly, home renovations can significantly increase your home’s value. So, say you invested $50,000 into your kitchen remodel, and that brought your home’s value up from $350,000 to $400,000. When your home’s value increases, you may want to adjust your dwelling coverage to match the new value of your house.

Additionally, you may also want to make sure your deductibles align with how much cash you have in the bank. If, in the last year, you switched jobs, retired, or started paying for your child’s college tuition, it may be wise to adjust your deductibles to best reflect your current finances. Remember, the lower the deductible, the higher the premium, and the higher the deductible, the lower the premium.

As you review the items in your home during your spring cleaning, take stock of what you keep and what you get rid of. Have you decided to get rid of some of your valuables? Did you upgrade your kitchen appliances? Did you add to your expensive jewelry or sports equipment collection in the past year?

Your personal property coverage, or Coverage C on your home insurance policy covers all the items you store in your home, like appliances, furniture, and electronics, among other minor things, like clothing or jewelry. If you pared down your possessions by a significant amount since your last policy renewal or if you’ve added items of high value, it might be time to take a closer look at your Coverage C limits.

As you go through the items in your home, consider adjusting your coverage limits accordingly. If you’ve collected specific, highly valuable items since your last policy renewal, like antique furniture or a wedding ring, you might consider adding an endorsement to extend more coverage to these valuables.

The warmer months are prime time for entertaining guests, and with more people on your property, the higher likelihood that you’re on the hook if someone sustains an injury while at your house. Accidents happen, but it’s essential to be prepared for that inevitable moment a neighbor trips on your child’s bike while it’s your turn to host the monthly neighborhood cookout. That’s where your personal liability coverage, or Coverage E, comes in.

Personal liability coverage, or Coverage E, may kick in to help you cover legal fees or medical expenses if a guest sustains an injury on your insured property. So, if your house is the go-to house in the neighborhood for bonfires, cookouts, or all the summer birthday parties, you may want to increase your liability coverage.

Your Coverage E may also protect you if you or a member of your household accidentally damage someone else’s property. So, maintaining a limit of personal liability coverage that best suits your family’s habits and budget is the best way to protect your liability.

As temperatures rise, the threat of extreme weather like tornadoes, hurricanes, or even landslides increases. Unfortunately, you’ll find when performing your spring insurance review, that floods aren’t covered on your policy, and you may have a separate deductible for wind and hail damage. If you live in a region susceptible to these events you may consider binding separate insurance policies to cover the damage they cause.

Having a flood insurance policy can make or break homeowners financially. Just an inch of floodwater can cause about $27,000 in damage, according to the Federal Emergency Management Agency (FEMA). So, if you live in an area prone to hurricanes, heavy rainfall, or thawing snow in the warmer season, it’s time to get a flood insurance policy.

Homeowners can find a flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer, like our partner Clovered.

Homeowners in wind-prone areas may consider having a wind mitigation inspection done on their homes to ensure the materials are sturdy enough to withstand the elements. Passing a wind mitigation inspection may even help homeowners save on their premiums.

Performing a spring homeowners insurance review can help you stay up-to-date with your coverage and make sure nothing falls through the cracks when it comes to whatever the warmer weather brings your way.

By reviewing your coverage limits, adjusting them to suit the savings you have in the bank, and adding additional policies if needed, you can peacefully soak up the sunshine, knowing your property and liability are protected.