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  • Writer's pictureEric Akines

The Benefits of an Annual Insurance Review for Real Estate



Real estate is a significant investment, and as a homeowner or landlord, it's essential to protect that investment with adequate insurance coverage. However, insurance needs can change over time, and it's crucial to review your insurance policy annually to ensure that you're adequately covered.

Here are some reasons why an annual real estate and insurance review is crucial:


Changes in your property: Over time, your property may undergo changes that could affect your insurance needs. For example, you may have added an extension, updated your kitchen or bathroom, or installed a new roof. These changes can impact the value of your property and the cost of rebuilding, which could affect your insurance coverage. Changes in the real estate market: The real estate market can be volatile, and changes in property values could affect the amount of insurance coverage you need. It's important to review your policy each year to ensure that you're not underinsured in case of a loss. Changes in your circumstances: Your circumstances can change over time, and this could affect your insurance needs. For example, you may have started renting out your property or added new tenants. These changes can affect your liability exposure and require additional coverage. Protection against unexpected losses: The purpose of insurance is to protect against unexpected losses, and an annual review can help ensure that you have the right coverage in place to protect against new risks that may have emerged over the past year. For example, if you live in an area prone to natural disasters, you may need additional coverage for flood, earthquake, or wind damage. Peace of mind: Regularly reviewing your insurance policies and ensuring that you have the right coverage in place can provide peace of mind, knowing that you're protected against unexpected losses and have taken steps to mitigate potential risks.


When reviewing your real estate insurance annually, it's important to ask the following questions to ensure that you have the right coverage in place:


1. What's covered under my policy? - Make sure you understand what your policy covers and what it doesn't cover, so you can determine whether you need additional coverage or endorsements. 2. Are there any changes to the policy this year? - Your insurance company may have updated your policy or made changes to your coverage since your last review. Make sure you understand any changes and how they may affect your coverage. 3. Is my property adequately insured? - You'll want to ensure that your property is insured for its current value and that you have enough coverage to rebuild if it's damaged or destroyed. You may also want to consider additional coverage for high-value items or features like swimming pools or detached structures. 4. Do I have enough liability coverage? - Liability coverage protects you in case someone is injured on your property or if you're sued for damages. You may want to consider increasing your liability coverage if you've made significant upgrades to your property or have added new tenants. 5. Am I eligible for any discounts? - You may be eligible for discounts if you have a good claims history, install safety features like smoke alarms or security systems, or if you bundle your insurance policies. Ask your insurance company if you're eligible for any discounts that could lower your premiums. 6. Do I need additional coverage for natural disasters? - Depending on where you live, you may need additional coverage for events like floods, earthquakes, or hurricanes. Ask your insurance company if you're adequately covered for natural disasters, and consider adding coverage if necessary. 7. How do I file a claim? - Finally, make sure you understand the process for filing a claim and what documentation you'll need to provide. Knowing what to do in case of an emergency can help you respond quickly and minimize damage.


In short, an annual real estate and insurance review is crucial to ensure that you're properly covered and protected against unexpected losses. By reviewing your policies each year, you can ensure that you have the right coverage in place to protect your significant investment in real estate and can rest easy knowing that you're adequately covered.

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