California: IINC Reminds Consumers to Re-examine Insurance Policies

The Insurance Information Network of California (IINC) is reminding homeowners to review their insurance policies in 2010.

During the course of a year, many changes could impact the insurance coverage. Among the items could be the addition of a room or a major room remodel; new appliances or electronics purchased or received over the holidays; or a homeowner retiring from a job and now spending much additional time at home could all be changes that affect the cost and type of homeowner insurance needed. In these challenging economic times, a thorough policy review could also save some money.

According to Candysse Miller, executive director of IINC, "Now is the best time to make the necessary changes to your homeowner insurance. Just as homeowners may change batteries in smoke detectors or begin to prepare their taxes, they should add an insurance review and home inventory to their New Year's priorities.'

According to an IINC statewide poll, while most homeowners agree that it's their responsibility to keep their insurance updated, less than a third reported they had done so in the last year. Homeowners also think they have coverage for earthquake and flood damage, even though the majority of standard homeowner policies exclude both.

A year-end insurance check-up should have included:

• An analysis of the reconstruction cost of the home, including the adjusted costs of materials, labor and upgraded building codes;
• A thorough home inventory matched with sufficient coverage for all the homeowner's possessions; and
• A review with an agent or insurance company representative to understand qualifying discounts.

Homeowners should also know that by increasing the deductible, the cost savings could offset an increase in coverage.