Valuable Reminders About Your Homeowners Insurance
by Katherine Reuter, University of Illinois

• Review the replacement cost of your home.

• Building costs increase very year. Therefore, the replacement costs of your home rise. If you started out with full replacement coverage, make sure your policy coverage has not gone below 80 percent of this year's replacement costs.

• Consider increasing coverage if you have made home improvements. You will need to increase your coverage if you made any major improvements to your home, such as remodeling the kitchen, adding a fireplace or adding a room.

• Update your inventory annually. Keep a household inventory of everything you own and update this list annually. Make sure your homeowners insurance adequately covers your possessions. If you have acquired something valuable, such as jewelry, sterling silver flatware or valuable heirlooms, you may need to add a floater to your homeowners policy.

• Consider trends in lawsuits and awards. You should make sure your policy has liability covering accidents accruing to guests, family members, or neighbors on and off your property.

• Determine if you have any special insurance needs. If you live in a high-crime area or flood-prone area, you may need special insurance coverage. Your insurance agent can guide you to the availability of such insurance.

Your home is likely the most expensive item in your family's budget. For this reason, it is important to look over your needs to protect your home and shop around for the best homeowners policy with an independent insurance agent.