Are You Spending Too Much on Home Insurance?
A Home Value Preservation Blog Post
Learning to properly care for your home does more than just save you money short-term and give you a more pleasant place to live: it preserves the value of your home, increasing the price you can get when it’s time to sell or refinance.
Have you had a new roof installed recently? Made improvements to your electrical or plumbing systems? Installed a security system? Those types of improvements are excellent ways to increase the value of your home. But did you know they can also reduce how much you pay in homeowners insurance?
Our friend Raz Syed of Liberty Mutual Insurance tells us that homeowners often miss out on cost savings because they do not review their policies. Typically, insurance payments are put into escrow and paid with mortgage payments, which creates an out-of-sight, out-of-mind situation for the policy and the cost. He recommends addressing your homeowners insurance any time you make improvements on the house or annually.
Raz believes in educating homeowners whether they are Liberty Mutual clients or are insured elsewhere. Coverage counseling prevents overpaying premiums and also helps homeowners who may be underinsured, another issue that Raz sees frequently. For example, many homeowners do not realize that they are not insured for water damage from sewer backup. A simple rider can correct this problem.
Raz says his number one coverage counseling goal is to be sure the insurance company is reflecting a fair replacement cost for the home. Failure to review the policy can create a situation in which the replacement cost is far lower than what it should be. This results in a low replacement payment should the unfortunate circumstance of a full loss occur.
Another tip shared by Raz: make sure items of greater value (typically those valued at over $1,000), like artwork, musical instruments, and jewelry are insured as scheduled (or itemized) property. Homeowners frequently believe these items are covered by their property insurance, but, if they’re not scheduled, they’re not covered.
To learn if you could be saving money on homeowners insurance and if you have all the coverage you need, contact Raz Syed at Liberty Mutual Insurance. Faraz.firstname.lastname@example.org 630-605-0919. Raz also provides coverage counseling on personal auto insurance.
Our Home Value Preservation section is just for you! What advice or tips can we provide for you? Please email us with your ideas. Our goal is to help homeowners enjoy their homes while preserving their home’s value.