As part of our New Year Resolution series, let’s focus on a resolution you can actually keep—understanding your homeowners insurance. With rising premiums and shifting discounts, now is the perfect time to ensure you’re getting the best value while protecting your home. From uncovering what’s truly covered to navigating the post-storm premium hikes, this guide will help you take control of your policy, save money, and start the year with peace of mind.

Why Reviewing Your Homeowners Insurance Matters

The past year has seen its share of wildfires, storms, and floods, making it clear just how essential it is to understand your homeowners insurance. Many homeowners assume their policies cover everything they might need, only to discover gaps after a disaster. Taking the time to review your policy ensures you are adequately protected and can avoid unpleasant surprises.

Key Steps to Master Your Homeowners Insurance

The first step is to carefully read through your policy and understand its details. Most homeowners insurance policies provide coverage for common risks, like fires and theft, but many exclude events such as floods and earthquakes. If you live in an area prone to these hazards, you’ll need to purchase separate policies, such as flood insurance, which is often available through FEMA or private insurers. It’s also important to check your policy limits to ensure they align with the current cost to rebuild your home and adequately protect your personal belongings. Another critical detail is your deductible, which is the amount you’ll need to pay out of pocket before your insurance kicks in. Some policies even have separate deductibles for specific disasters, such as hurricanes or wildfires, so it’s essential to understand these details upfront.

Asking questions is vital, and there’s no such thing as a dumb question when it comes to your coverage. If you’re unsure about anything, contact your insurance agent for clarification. For example, you might ask whether your policy reimburses the replacement cost of damaged items or only their depreciated value. Document the answers you receive, and whenever possible, request written confirmation from your agent. This can help you avoid misunderstandings and ensure you know exactly what to expect if you need to file a claim. Always read the policy itself, as it is the final word on your coverage.

Another critical step is rebidding your policy. In the past, insurers often provided significant discounts to loyal customers, but this has shifted. Today, many insurance companies offer their best deals to new customers as a way to attract more business. If you’ve been with your insurer for several years, it’s worth shopping around to see if you can find a better rate for comparable or even improved coverage. Rebidding also allows you to compare providers and confirm that your insurer has a strong AM Best rating, which indicates financial stability and reliability.

Even if you haven’t filed a claim recently, your premium might increase following a disaster in your area. Insurers often raise rates across the board after events like storms or wildfires to offset the increased risk. This means that even if your home wasn’t directly affected, you could still face higher premiums. Rebidding your policy is an excellent way to mitigate these increases by exploring more competitive options.

Finally, updating your policy is essential if you’ve made renovations or acquired valuable items, such as jewelry, electronics, or art. These changes can affect your coverage needs, so it’s important to notify your insurance company to ensure you’re adequately protected. Keeping a detailed inventory of your belongings, complete with photos, videos, and receipts, can make the claims process much smoother in the event of a loss.

Trusted Resources and Partners

Insurance can feel overwhelming, but you don’t have to navigate it alone. To help simplify the process, we’ve compiled trusted resources and professional recommendations. Check out our guides on Texas Wildfires and Homeowners Insurance and Trusted Insurance Partners in Austin to take the next step with confidence.

Why This Resolution Matters

Understanding your homeowners insurance is about more than just saving money—it’s about ensuring you and your family are protected from the unexpected. By reviewing your policy, asking the right questions, and rebidding when necessary, you’re taking a proactive step toward financial security in 2025.

Have questions or need guidance? Adam Timothy Group is here to help you every step of the way.

Stay tuned for the next blog in our New Year Resolution series, where we’ll explore how to take control of your property taxes. Here’s to a secure and successful year ahead!