On Your Side

If you have a mortgage, you already know you're required to carry homeowners insurance. The package policy probably went into effect the moment you purchased your home. In truth, that coverage is intended to protect your lender, as much as you and your family, against property damage. But, it also includes liability protection against injuries or property damage caused by you or your family. Even damage caused by your pets!

Choose the Right Policy

The lender obviously has a large and legitimate financial stake in your house, and therefore has a vested interest in its physical protection. However, homeowners should take an even bigger interest in ensuring that they have adequate, fairly-priced coverage. It's part of good financial planning and home management.

For instance, are you really certain you have the best policy for your needs? Could you be paying too much? Do you have enough coverage now to protect new purchases or home improvements you've made? When was the last time you updated your inventory? Or do you even have an inventory? When was the last time you reviewed or updated your policy?

In the flurry of activity that accompanies settlement, many home buyers don't have adequate time to delve deeply into the details of the homeowners' insurance policy they're buying.

Get the Most for the Least

After the dust has settled, so to speak, it's a good idea to sit down and scrutinize your homeowner's insurance policy; make any necessary changes; and, most importantly, use smart tactics for getting the most for your premium dollars.

It's not difficult, if you lay the proper foundation and do regular policy maintenance. You take care of your home, right? You also need to do regular upkeep on your homeowners insurance.

Here's how: