Evaluating Your Homeowner’s Insurance Policy

What would you say if someone told you that you should go to a doctor every year for an annual check-up? Most likely, you would respond: “I know.” So what if someone tells you that you should perform an annual check-up on your homeowner’s insurance policy? You might look at them like they’re crazy. Unfortunately, people lose homes due to fires and other natural disasters every year. And every year, people find out their insurance policy doesn’t fully cover their home.

Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association (RMIIA), believes it is important to know and understand your homeowner’s insurance. “The biggest things to think about are: ‘What are my policy limits? Would I be able to repair and rebuild my home in the cost of today’s dollars?’ That’s not what you can sell your home for, but what the insurance company cares about is how much it would cost to rebuild it. So that’s something you’re going to want to look at on an annual basis,” says Walker.[1]

RMIIA reminds people that it is important to have all your legal documents in a safe place and to have a detailed inventory of your home’s contents on video or in photographs. It is also a smart idea to send a copy of your important documents including your insurance policy to family or friends out of state for safe keeping. This will expedite your claims process and more importantly get you back to your day-to-day life more quickly.

Visit RMIIA’s website at www.RMIIA.org for free downloadable content to help you take a detailed inventory as well as helpful hints and tips to keep you prepared.


[1] Lambert, Liz. “Time to do ‘Spring Cleaning’ on your homeowner’s insurance policy.” 9News. N.p., 22 Mar 2011. Web. 23 Mar 2011. <http://www.9news.com/cleanprint/?unique=1300910248796>.


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