Many older Myrtle Beach, SC residents who own a home enter their retirement years looking for ways to cut expenses. One place they could be saving money might be their homeowner’s insurance. Because a home is usually the largest investment your family might have, it wouldn’t be wise to indiscriminately cut property and liability coverage. So, what is the best way to evaluate your insurance coverage to ensure you’re protected?
Bring Your Coverage Up to Date
Because older policies may be providing inadequate coverage, it’s important to read your current homeowners policy and make sure your coverage is up to date, especially if you’ve owned the policy for a while. You may want to consider purchasing guaranteed or extended replacement cost coverage rather than actual cash value coverage which typically only pays the current value of your home – minus age and wear-and-tear deductions.
Increase Your Deductible
Having a low deductible sounds great in theory, but in reality, you pay a premium for having a low deductible in the form of higher annual payments. If you have savings or an emergency fund you can save money by raising your deductible for claims up to $1,000 or more.
Sign Up for Duplicate Premium Notices
If you, like many retired homeowners, don’t have a mortgage, your premium is not being paid by the bank from your escrow account anymore. The premium notices are instead sent directly to you. If you misplace or forget to pay your premiums your coverage may be canceled, which has the potential for catastrophic consequences. It is wise to designate an adult child or other trusted relative to receive a duplicate premium notice and ensure that it’s paid on time.
Don’t Be Tempted to Cancel Your Homeowners Insurance
Many American homeowners – especially those who have never filed a claim, make the mistake of canceling their homeowner’s insurance once their mortgage is paid off. If you are like many retirees, your home represents the greatest part of your net worth, yet older homes face greater risks for fire.
Check Your Liability Coverage
The most overlooked homeowner’s insurance coverage is a liability, according to experts. As a retiree, you are more likely to have someone in the home helping you. If someone slips and falls, you may be sued, and you could lose all of your retirement nest egg. Make sure your personal liability coverage is equal to your net worth.
Do You Have Questions About Your Myrtle Beach, SC Homeowners Insurance?
We have answers! Give Benefit Insurance Services a call today to find out if your current homeowner’s policy needs updating.