I’m a realist – insurance is a huge part of my life because it literally is my job, but I know the average Joe isn’t examining his homeowners policy on a regular basis (not even I don’t do that). Once it’s selected, the policy is usually forgotten about unless there’s a claim. At that point, it’s a bit too late to re-evaluate your policy.
In an MSN article, reporter Liz Pulliam Weston says that sometimes no matter what you do, there will be gaps in your policy. These exclusions vary by insurer, but if you know about these coverage gaps in advance, you can re-visit your policy and switch to something that can adequately cover your needs.
You might want to re-check your policy if you’re concerned about any of the following, generally uncovered, situations that Weston details:
•Mold and water damage
•Luxury items and collectibles
•War, nuclear accidents and terrorism
You can also see if your insurance carrier partners with a contents claims provider that can assist you in taking an inventory of unique collectibles or valuable household contents which you might have overlooked during your original assessment. Usually people will plan to separately insure obvious things like a diamond ring from the get-go, but it’s also important to make sure other things are covered like computer equipment or luxury items and collectables, as noted in the list above.
Whether you’re an insurance buff or an average Joe, it’s never too late to re-evaluate!