With more people staying home, social distancing and taking on household chores, now is the ideal time to schedule an annual insurance policy checkup (via phone or email with AAA) to help ensure your financial well-being. Homeowners who are taking time to paint or modernize their homes should find out if their insurance coverage needs to be updated.  With more time on their hands, homeowners should take an inventory of jewelry and other items that should be included on an insurance policy.

“It’s a good idea to thoroughly review your insurance policies annually,” said AAA Western and Central New York Vice President of Insurance David Hodge. “You really need to prioritize the task and may want to consider a variety of factors, from the ages of your vehicles to any upgrades you plan to make to your home. In doing this, you can determine what sorts of changes you might need to make to your insurance coverages.”

AAA offers this checklist to outline some of the areas that should be considered:

Home Upgrade. Remodeling your kitchen or bathroom, adding an extra room, or upgrading other features in your home may add substantial value to your house. Before the work begins, check to see if you need to increase your insurance coverage. By doing so, the addition or upgrade will be covered in case it’s damaged or destroyed during construction. Also, be sure to notify your agent if you’ve installed a new roof or upgraded your electrical or plumbing system. You may get a reduction in your homeowners premium because these improvements can reduce the risk of damage to your home.

Home Inventory. If you don’t have one already, it’s time to create a home inventory. A home inventory is a list of all the things you own. Include a description of each item, where you bought it, how much it costs, and the make, model and serial number for major items. You can also document your items by taking photos or videos. If you have receipts, attach those or save on a flash drive, and store in a safe place, like the safe deposit box at your bank. That way, you can access the inventory if the copy at your home is somehow lost or badly damaged.

Home Value. It may be time to re-estimate what it would cost to rebuild your home. The estimate should cover construction costs, but not include the price of the land. To determine the ballpark amount, first, contact a local building association or real estate agent and ask them for the current construction cost per square foot for homes in your community. Take that number and multiply it times the number of square feet in your home. That figure will give you an idea of whether you have sufficient coverage to rebuild your home at the current cost of construction if it is destroyed.

Liability. Check the liability coverage on your homeowners or renters policy to make sure it is adequate, especially if you’ve added such things as a swimming pool or a hot tub, or now have a trampoline in your yard or basement. This may also be the time to consider taking out a personal umbrella policy for additional liability coverage.

New Valuables. If you’ve acquired new valuables, such as jewelry or expensive pieces of art, check your policy. It could have a limit on the amount that will be covered for these types of items, and you may need to add optional coverages to cover the value of any additional acquisitions.

Coverage by Multiple Companies. If you purchase auto insurance from one company and life insurance, homeowners, or renters insurance from another, you may want to consolidate and buy multiple policies from the same company to take advantage of a multi-policy discount.

Auto Coverage. Re-evaluate your auto insurance coverage if you have an aging auto. Check your car’s Kelley Blue Book value to determine what your car is worth and decide whether the premium you’re paying for collision coverage makes sense, based on what you would receive if your car were totaled. Also, figure out if you plan on driving your car more or less during the coming year. If you have changed jobs or retired, you may need to change your policy to reflect the number of miles you intend to drive.

Students in College. If your child will be going to college with a car that’s covered by your auto insurance policy, be sure to inform your agent as soon as possible. The cost of the premium may change. You may also want to see if they need a separate renter’s policy, or if they can still be included in the parents’ homeowner’s policy.

New Drivers. If you are a AAA Insurance policyholder with a teen driver in your household, consider enrolling your 18 or younger teenager in the teenSMART home study program. This program, once completed, may result in up to 20 percent savings on most auto coverage when your teen gets their license. You may also qualify for a Good Student discount if your child has less than nine years of driving experience, is a full or part-time student that is not married and has a certain grade point average. 

Auto Insurance Discount. Save 10% on the collision, liability and no fault portions of your auto insurance for the vehicle you are listed as the principal driver for by taking a defensive driving course. This course is conveniently offered online so you can take it in the safety of your home. Go to AAA.com/defensivedriving to register or for more information.

AAA’s insurance agents can be reached by phone at 1-888-671-7044, find contact information for local agents at AAA.com/InsuranceAgent, or request a quote online at AAA.com/Insurance. 

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