When was the last time you reviewed your homeowners insurance policy? Changes over time can leave you underinsured without realizing it. If any of the following apply to you, it’s time to take another look at your coverage:
● Rising Home Values – If property values in your area have increased, your policy may not reflect the true cost to rebuild.
● Renovations & Upgrades – Major improvements like kitchen remodels, additions, or finished basements can raise replacement costs.
● Higher Construction Costs – Rising labor and material costs may mean your current coverage isn't enough.
● New Valuable Items – If you've acquired high-value items like jewelry, electronics, or artwork, you may need additional coverage.
● Policy Changes – Insurance providers periodically update policies, adjust rates, or modify coverage options—sometimes without homeowners realizing it.
We sat down with Bryan Aguirre of Capital Insurance Partners to discuss why reassessing your homeowners insurance is essential and how to ensure your home is fully protected.
The Risk of Being Underinsured
Studies show that 70% of homes are underinsured, meaning homeowners may not have enough coverage to fully rebuild their property in the event of a total loss. As construction costs continue to rise, it's critical to verify that your dwelling coverage is adequate. A full insurance audit can help determine if your policy aligns with current rebuilding costs, giving you peace of mind that your home is protected.
Understanding Water Coverage
Water damage is one of the most scrutinized claims in the insurance industry. Not all policies cover water damage in the same way, and some homeowners find out too late that they lack adequate coverage. Be sure to review your policy’s stance on water backup coverage and other potential exclusions to avoid unexpected out-of-pocket expenses.
Risk Mitigation Can Save You Money
Investing in risk mitigation devices can help protect your home while also potentially lowering your premiums. Some devices to consider include:
● Central alarm systems – Enhances security and may qualify for policy discounts.
● Water shut-off devices – Can prevent costly water damage by detecting and stopping leaks.
● Ting – Electrical current evaluation – Helps identify electrical hazards before they cause fires.
● Water sensors – Alerts homeowners to leaks early, reducing the risk of extensive damage.
Choosing the Right Carrier Matters
Not all insurance carriers offer the same level of protection, especially for custom, unique, or historic homes. If your home falls into one of these categories, it's important to compare policies from different carriers to identify potential coverage gaps and ensure you have the right protection for your property.
Optimizing Your Deductibles
Insurance is designed to transfer risk for significant events, not everyday repairs. One strategy to save on premiums is to raise your deductibles, ensuring your policy is used properly for major incidents while keeping your monthly costs manageable.
Bottom Line
Reevaluating your homeowners insurance isn't just about cutting costs—it’s about making sure you have the right coverage for your home. With the ever-changing insurance landscape, working with a knowledgeable professional like Bryan Aguirre of Capital Insurance Partners can help you navigate your options and secure the best policy for your needs.
Before contacting an insurance professional, let us, as local DMV real estate experts, provide you with a free home value assessment to ensure your coverage accurately reflects your home's true worth.
Capital Insurance Partners
Bryan Aguirre
301.704.3117
[email protected]
