Start the Year Right: Annual Insurance Checks and Home Inventory
NATION — The beginning of a new year is the perfect time to take stock of important tasks that safeguard your home and property. Two critical steps to prioritize are conducting an annual insurance check and completing a home inventory. These steps can ensure you’re properly protected and provide peace of mind.
Why Annual Insurance Checks Matter
Scheduling a yearly conversation with your insurance agent allows you to:
- Review and update home and vehicle coverage.
- Confirm that new drivers are added to your policy.
- Estimate the replacement cost of your home accurately.
Key Coverage Terms to Know:
- Market Value: The price a buyer would pay for your home, including land value.
- Replacement Cost: The estimated expense to rebuild your home entirely.
Insurance agents recommend coverage equal to at least 100% of your home’s replacement cost. Regular updates account for changes in labor and materials costs, home upgrades, and remodeling projects. This ensures your coverage remains adequate, even under unforeseen circumstances.
The Importance of a Home Inventory
Before your annual insurance check, create a complete home inventory to keep your records current. This step helps:
- Replace belongings lost due to theft, damage, or disaster.
- Expedite insurance claims.
- Ensure adequate homeowners or renters insurance coverage.
Three Ways to Create a Home Inventory:
- Written Inventory: Use a spreadsheet or checklist to document item details, value, and purchase dates. Include receipts or photos as proof.
- Digital Inventory: Use smartphone apps to photograph and log your possessions with descriptions and values.
- Visual Record: Record a video walk-through or take a photo series of your home’s contents.
You can combine methods for a thorough record of your belongings, making claims easier and ensuring proper coverage.
For additional tips and resources, visit State Farm Insurance’s blog, “How to Create a Home Inventory.”
—BPT
