By Lorie Ham
Inflation is popping up everywhere we turn, but did you know that it could also affect your home insurance coverage? That is why it is important to do regular updates so you don’t find yourself in a bind should something happen.
According to a recent article in Insurance Journal a new American Property Casualty Insurance Association (APCIA)/Harris Poll survey of over 1,000 U.S. homeowners who have a homeowners insurance policy, shows that a majority of homeowners have not taken the steps to make sure that their coverage is keeping pace with inflation and increased building costs. Not only are a lot of people failing to keep up with inflation costs, but among insured homeowners who completed renovations or remodels during the pandemic, less than half (40%) updated their home insurance to account for those changes.
Another concern in many parts of the country is the increased risk of damage and loss from wildfires. An article on United Policy Holders states that as wildfires continue to grow in size and expense while ravaging or threatening residential areas, insurers and policy advocates are warning that roughly two-thirds of homes are underinsured. Depending on where you live, some other hazards such as floods are increasing as well. Are you in an area that is more likely to be affected by hurricanes, earthquakes, floods, or fires?
According to National Calendar Day.com, June 28 was National Insurance Awareness Day, a day when you are reminded to update your coverage. While that day has just passed, it’s not too late to take the time to make sure you have all of the coverage that you need. Some of the things they encourage you to include on your check-up checklist are:
- Evaluate your current possessions.
- How has your family changed? Has your family grown or have family members moved away? How many pets do you have?
- Do you plan to buy a new home?
- Are there big changes ahead that will influence the amount of insurance you will need?
“At Mennonite Aid Plan, we work at keeping the coverage adequate through regular updates,” shares Mennonite Aid Plan General Manager and CEO Jerry Linscheid. “Inflation affects every homeowner, so coverage should be looked at regularly.”
Contract Mennonite Aid Plan/Mennonite Insurance Services at 559-638-2327 with any questions about your homeowners insurance today. And while you are at it, be sure to check up on any other policies you might have as well!