If you own a home, it is a given that you have homeowners’ insurance. You were required to purchase minimum coverage to be able to obtain a mortgage, but is the coverage you have enough and is it still a good fit? Many people purchased their homeowners’ policies when they purchased their homes and never looked back. Most of them don’t know what their deductible is, what their policy does and does not cover or what other coverage is available to them within their existing policy. Frequently, people have the minimum coverage that will be enough to pay back the lender after they pay a large out of pocket deductible, but they don’t always have something left for themselves to cover the costs of loss of what was inside the home.

It is important to review your homeowners’ protection annually to make sure that it still fits your needs. If you’ve never gone for a review – call your agent. You may find that your policy is too much or too little or that it will only pay a few thousand dollars for what is inside your home if it was destroyed. Evaluate your belongings and come up with an approximate amount of money you would need if you had to replace them. Don’t overdo it: the higher the number you come up with – the higher the premium. You want to obtain just enough coverage to replace the things that you need, while saving money on premium. Also, review the premium-deductible relationship as it concerns your individual policy. If you are able to come up with a large sum of money for your deductible – go ahead and ask for the higher deductible – you will save money on premiums. On the other hand, if you live paycheck to paycheck and know that paying a $3500 deductible is not an option, ask for a lower one and deal with higher premium payments.

Different insurance policies offer different additional benefits and have various limitations. You can purchase a rider to cover your jewelry, antiques, home office equipment etc. You also should purchase flood protection insurance if you live in an area that gets flooded – your homeowner’s policy will not cover it.

Homeowners’ insurance also does not cover damages caused by wear and tear – it is considered to be the homeowners’ responsibility to take care of their property. The same could be true if you’ve had a tree fall on your house. The insurance company will attempt to prove that the tree has been posing a threat to your property, but you failed to take care of it. However, if there are no signs of the tree posing a threat to your home, but it falls during a thunderstorm – your insurance company will likely reimburse you not only for repairs, but also in part for the removal of the tree.