Schwarz Insurance Blog

As you age, your needs change. You probably aren’t still driving the first car you ever owned, and we certainly hope you aren’t still eating like you did in your twenties. So why would you keep the same home insurance policies you had when you rented or first bought your home? Today you probably own a larger home and have far more furnishings and items of value than you had even a few years ago. It may be time to reevaluate your homeowners insurance policy to see if you’re getting the best coverage for your current situation. You could be inadequately protected or have policies that don’t reflect your needs.

“What’s new and improved in your home?”

If you’ve acquired valuable jewelry, remodeled, bought new furniture or made other improvements to your home, you might need more coverage. To determine which items of jewelry could be insured, get the value of each piece appraised by a jewelry appraiser. Any remodeling or improvements, such as a major kitchen remodel or a sunroom addition, are investments that have made your home more valuable. It’s a good idea to discuss home changes with your insurance agent so you can arrange to have the appropriate coverage to protect your home and its belongings.

“Replacement value or actual cost value?”

There are two options when insuring your valuable belongings: replacement value reimbursement or actual cash value reimbursement. Although they sound the same, they’re actually quite different. If you have replacement coverage and your couch is damaged in a fire, your insurance company would pay the cost to replace it; so, if you paid $1,500 for it two years ago, you’d be reimbursed $1,500. If you have actual cash value coverage, on the other hand, the insurance company might pay you $1,000 for the couch, which is the replacement cost ($1,500) minus the depreciation ($500) that’s incurred in the time since you purchased it. While replacement coverage is more expensive, it’s still important to weigh the pros and cons of both with an insurance expert.

These are just a few of the things to consider as you think about your homeowners insurance needs today compared to the time when your policy was issued or last revised. Speak to someone with expertise and knowledge who will help direct you toward policies that protect you, your family and your belongings. Talk to an experienced professional to determine which coverage options are appropriate for the grown-up you.