A love-hate relationship with your homeowners insurance

Unless you are the one-in-twenty who likes legal minutiae, there a good chance you haven’t really read your homeowners or renters insurance policy. We’ve found that few people get beyond their insurance agent’s cover letter and the top page of the policy when they receive their annual renewal.

We can understand.

There’s a lot to read and make sense of when it comes to insurance policies. It is one of those documents most of us stash in a safe, out-of-the-way place—somewhere in the furthest recesses of a linen closet or at the back of a drawer. Renters do the same.

A renters or homeowners insurance policy is a document that everyone values and simultaneously avoids.

Many decide they’ll read it when they need it, which they hope is never. We sincerely join you in that hope, but the industry experts are deadly serious in recommending that you bite the bullet and review your policy at least once a year.

And with the year winding down, there’s no better time to for your homeowners insurance policy annual checkup!

Why? There are many reasons—here are just a few:

  • Type of coverage. Is it ACV or Replacement cost? ACV stands for “actual cash value” which means depreciation is deducted in the event of a loss. Visit the National Association of Insurance Commissioners’ site to download their handy inventory worksheet.
  • Liability limits. Do you have enough? It’s hard to know.
  • Accurate inventory. As your possessions come and go, they need to be reflected in the policy. This is where over-insuring is most commonly spotted.
  • Deductible. The amount of deductible in your Charlotte Area homeowners or renter’s policy is where you can reap significant savings…if you are willing to absorb more of the expense should a loss occur.
  • Discounts. If you have more than one type of insurance policy with the same company or are a long-term customer with few claims, you might qualify.

After your house insurance checkup, you should experience some degree of relief. After all, not only are you newly confident that you are accurately covered, but even better: now you don’t have to read the thing for another year!

We’re not insurance agents nor are we offering advice about coverage. That’s best left to someone who is licensed and specializes in the field—your own agent.

Our job is helping clients in the Charlotte area make the most of their real estate opportunities and decisions. Whenever you can use some help or guidance in that area, just reach out.

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The article referenced and links are provided as information and for convenience and do not constitute an endorsement of the linked-to website or its owner. We have no partnership with the website or its owner, nor are we compensated in any way for sharing this information. We encourage you to seek an appropriate advisor in your local area to develop a plan that meets your unique needs.

David Harkins is NC Real Estate Broker and REALTOR®. Before working in Real Estate, he had a fulfilling career in business consulting and marketing, advising both large and small companies including several in the Fortune 500 and many of America’s largest nonprofit organizations. In his spare time, he consults, speaks, writes, hikes, explores, and creates art. Although, not necessarily in that order.

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