Checklist: Homeowner’s Insurance

An annual review of your homeowner’s or renter’s insurance policy can prevent financial loss later.

* Make sure you have enough insurance. You may be underinsured if you’ve remodeled recently, if building costs have gone up in your area or if you haven’t reviewed your policy in years. Most insurance companies now limit how much they will pay to rebuild a home to 100% to 120% of the insured value, so it’s important to make sure you’re adequately covered. Consult your agent for help.

* Check what is and isn’t covered. If you received expensive gifts during the holidays, this review can be all the more valuable. Many policies limit coverage on valuables, paying no more than $1,000 to replace furs or $2,000 to replace jewelry or firearms, for example. If your valuables are worth more and you want to insure them, you’ll need to purchase extra coverage, usually known as a rider.

* Shop around. Although homeowner’s insurance isn’t as competitive as auto insurance, you could still save some money by comparing prices. The California Insurance Department has a premium survey at www.insurance.ca.gov that can give you an idea of going rates.