Homeowners insurance is one of those financial facts of life that just kind of happens to you. When you buy a home, the mortgage lender will insist on insurance coverage, so you get an agent's name, call and buy a policy. Odds are the premiums are even paid from the same lender-controlled escrow account that pays your property tax. Out of sight, out of mind. You don't give homeowners insurance much thought -- unless you try to file a claim and get into a squabble with the company.
See Our Ask Kim Column: An Easy Way to Save on Homeowners Insurance
The danger here is that insuring your home year after year becomes so routine that you fall prey to three potentially costly errors:
Assuming that all homeowners policies are alike. Actually, policies come in several varieties, and companies' versions of those varieties differ.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Taking it for granted that your insurance company charges about the same premium as others. Prices, in fact, can differ by astonishingly large margins.
Failing to update your coverage periodically. Even if your policy protects against inflation, the value of your home may outpace it; and as you accumulate more possessions, you may find your personal property dangerously underinsured.
To make sure you have the right protection for your property, review the basic aspects of homeowners policies described here:
Upgrade Your Home Insurance
Here's what a typical policy will -- and won't -- cover:
Liability Coverage
Make sure your insurance will pay if someone is injured on your property.
How to Find the Best Deal
Get several quotes and ask about discounts.
When Disaster Strikes
Follow these tips to ensure your policy pays when you need it.
Other Home-Related Insurance
A standard policy might not cover everything you need. Find out what other types of policies might come in handy.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summerThe Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
AI Goes To SchoolThe Kiplinger Letter Artificial intelligence is rapidly heading to K-12 classrooms nationwide. Expect tech companies to cash in on the fast-emerging trend.
-
What To Know if You’re in the Market for a New Car This YearThe Kiplinger Letter Buying a new car will get a little easier, but don’t expect many deals.
-
Will Lower Mortgage Rates Bring Relief to the Housing Market?The Kiplinger Letter As mortgage rates slowly come down here's what to expect in the housing market over the next year or so.
-
Car Prices Are Finally Coming DownThe Kiplinger Letter For the first time in years, it may be possible to snag a good deal on a new car.
-
New Graduates Navigate a Challenging Labor MarketThe Kiplinger Letter Things are getting tough for new graduates. Job offers are drying up and the jobless rate is increasing. Are internships the answer?
-
When's the Best Time to Buy a Domestic Flight? The Kiplinger LetterThe Kiplinger Letter A new study by CheapAir.com has crunched the numbers.
-
Woes Continue for Banking Sector: The Kiplinger LetterThe Kiplinger Letter Regional bank stocks were hammered recently after news of New York Community Bank’s big fourth-quarter loss.
-
Anxious Flyers Take Note: The Kiplinger LetterThe Kiplinger Letter Whether it's the routes to avoid that have the most turbulence or the safest airline, we've got you covered.
