Andrich Insurance

At this point in your life, your home is very likely your biggest asset – as well as a major cost item in your budget. You may move to a larger house, build an addition or replace that child-stained sofa and inexpensive wall decorations with pricier furnishings and artwork.

• Remember to add home insurance coverage as you enhance the value of your home and acquire expensive possessions like furniture, computers, stereos and television sets.
• You should alert your insurance company when making any major home improvement – usually anything over $5,000. You will want to update your homeowners insurance policy to reflect the new enhancement and prevent being underinsured.
• In maintaining your residence, you must realize that you are liable for things that happen on your premises. Keep in mind that in many states you could be held legally responsible for the actions of anyone who drinks in your home and then has an accident in your house or after leaving it. Your policy should protect you against lawsuits due to these types of liability issues.
• Remember that backyard items, such as a trampoline or pool, may require you to increase your liability coverage through an umbrella policy that protects you in the event that someone is injured while on your property.
• As you acquire more valuables – jewelry, family heirlooms, antiques, art – you might want to consider purchasing an additional “floater” or “rider” to your policy to cover these special items. They’re typically not covered by a basic homeowners or renter’s policy.
• If you have a child about to go away to college who will be living in a dorm or apartment, be sure to check your homeowners policy to see if their possessions will be covered. In many – if not most – cases, they will not be covered under your policy, and you may want to consider purchasing separate coverage.
• Most important, know what’s not covered by your policy. For example, a break in the water or septic line outside your home will typically not be covered by your homeowners policy but can be a financial drain to repair. Specialized policies may be available to cover these situations; for example, from your water or septic company.