Reassess your homeowner’s policy on an annual basis with these five steps.

Reviewing your homeowners policy may not rank high on your annual home-maintenance checklist. Yet following the five steps below will save you big bucks now and a lot of grief down the road. After the recent slew of natural disasters, average annual premiums are expected to surpass $1,000, with some owners likely to see double-digit rate hikes. Haven’t taken a close look at your policy lately? Then dust it off and make insurance your next project.

Measure How Much Coverage You Need

Your No. 1 priority must be the house itself. “Possessions, living expenses, and liability should all be secondary,” says Amy Bach of United Policyholders, an insurance advocate group.

Don’t base your coverage level, though, on the home’s appraised value, which includes land costs. Instead, says Kevin McCarty, president of the National Association of Insurance Commissioners, use the recent per-square-foot replacement costs in your area, available from your local homebuilders association. The difference can be sizable. In New York state, land makes up 9% of the average home’s value, according to the Lincoln Institute. In Hawaii, it represents more than half.

Is your area prone to natural disasters? Price out extended or guaranteed replacement policies, which protect you from inflated labor and material costs following such catastrophes.

Inspect What’s Not Covered

Don’t assume that all “perils” are covered. As homeowners learned the hard way after Hurricane Irene last August, standard policies exclude damage from flooding, not to mention earthquakes and landslides. “Most people aren’t aware of what their policy does and doesn’t cover until they file a claim,” says Deeia Beck, executive director of the Office of Public Insurance Counsel, a state consumer agency in Texas.

If you live in a high-risk area for floods, you may be required to add supplemental coverage, which can cost $1,700 to $3,300 on a $150,000 building and $50,000 worth of contents.

Also, take note of common exclusions, such as those on mold and even broken pipes owing to lack of routine maintenance. You know which nuisances your home is susceptible to. Use that knowledge to beef up coverage by adding so-called endorsements. Been a victim of sewage backups, which aren’t covered by most standard policies? Insure against them for anywhere from about $100 to $250 a year.

Recheck the Deductible

It may not be the same as it was a year ago. Many insurers are retooling deductibles from set dollar amounts to percentages, which can often represent a substantial change.

In general, you want to go for the highest deductible you can afford to lower your premiums. Beware, though, that not all insurers that are making this switch from dollars to percentages are cutting premiums at the same time. Also, be mindful that these deductibles are a percentage of the insured value of your entire home, not of what needs to be fixed. So if you have a $400,000 home, even a 5% deductible may be too steep a price to pay, and a reason to shop around.

Hammer Away at Your Premium

Insurers don’t always spell out how much your rates shot up on renewals. So dig out last year’s documents and compare for yourself. If your rates rose 5% or more, make sure to call the company for an explanation.

Knowing whether the increase resulted from changes in your risk profile or from broad-based increases in the marketplace will help you negotiate and comparison-shop—which you should do at every renewal or at least every couple of years.

In addition to bumping up your deductible, you can lower your premium by bundling together your home and auto insurance, which can shave off from 5% to 15%. Also, installing security systems, storm shutters, or a new roof can chip away another 15%. Before you make that commitment, though, check with your insurer to see if your installation qualifies, says Jeanne Salvatore of the Insurance Information Institute.

Clean Up Your Work Area

Finish your project by getting all your documents in place. If you haven’t already done so, conduct a home inventory (contact PMA Insurance Services for a worksheet). Pair that with receipts, photos, or videos and then store all your paperwork—along with a complete copy of your insurance policy—in a fireproof box.

For extra protection, scan and store all of that information digitally on a flash drive, and remember to keep that off-site, says Bach. If disaster strikes, you don’t want this critical information to be at risk too.

Contact Us!

At PMA Insurance Services, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable.

Just give us a call at (703) 449-1327 or send us a note at info@pmabenefits.com . We want to help you meet your goals, and make sure what’s important to you is protected!

Content provided by This Old House.

Finding competitive rates and quality coverage is not always easy but PMA Insurance Services is not just any agency. Homeowners receive the best personal attention and customized service catered to your needs. One of the best providers available with PMA Insurance Services includes Travelers.

Travelers Insurance is a Fortune 500 company decorated with many respectable awards from Forbes, Barron, and Goldman Sachs. Travelers protects homeowners when there is damage to the home or other structure, personal belongings, liability, valuable items, and other living expenses. Extensive auto coverage is also available and offer more than just standard liability.

Travelers insurance gives customers policies to cover property, bodily injuries, medical expenses, comprehensive damage, and collision with objects or vehicles. Travelers also protect injured policyholders from high costs caused by underinsured or uninsured drivers and offer coverage options for rentals, towing, gap insurance and more. Travelers Insurance is available to customers for efficient claim reporting and customer service.

Do you want the best coverage possible in the Northern Virginia area and nearby areas? PMA Insurance Services is proud to give clients a selection including Travelers, Kemper Preferred, Metlife, Safeco, Allied (Nationwide), and Hartford Insurance.

The time you spend in fall to prepare your home for the winter season can save you money in heating bills and costly repairs. Seasonal household preparations involve so much more than the outdoor work that people typically associate with autumn.

There are equally important preparations to take care of inside the house. If you’re willing to take the extra time to inspect those hidden areas for potential problems, you’ll be able to relax in the comfort of a warm, properly insulated and well-sealed home.

Add these helpful suggestions to your to-do list of seasonal preparations.

♦ Have Your Home’s Heating System Inspected

An $80 to $100 investment (the cost of the inspection,) may save you considerably more on winter utility bills. Doing this before you need to heat will also ensure that you don’t have to wait for a repair person on a miserably cold day. When they inspect your system, they will make sure it runs properly, and that the filters are clean.

♦ Reverse the Fan Blade Direction Switch on Ceiling Fans

Doing this will produce an updraft. This forces warm air down, something that is especially helpful in homes that have high ceilings. It may even allow you to turn the thermostat down enough to result in lower heating costs throughout the winter months.

♦ Clean Out Your Gutters and Downspouts

You may want to hire a professional to clean out your gutters and make sure that the downspouts aren’t blocked. If autumn is typically very rainy, you don’t want your gutters so clogged with leaves and other debris that the gutters are incapable of catching the rain. If you get a lot of snow throughout the winter, the gutters will catch water from melting snow that accumulates on the roof, preventing it from pooling there.

♦ Have Your Roof Professionally Inspected

A roof inspection will make sure that the shingles are intact, that none have curled, and that there is no flashing corrosion. The roofer will also make sure that there are no leaks that could allow cold air or water to enter.

♦ Inspect Carbon Monoxide, Smoke Detectors and Fire Extinguishers

Replace batteries in your carbon monoxide and smoke detectors. Have your fire extinguisher professionally checked, if you purchased it recently. If you have an old one, look for the expiration date. It may be time to replace it.

Make sure you’ve updated your homeowners insurance, especially if your circumstances have changed. If you’re new to Northern Virginia area, contact PMA Insurance Services to get an instant quote today at (703) 449-1327!