What You’ll Learn

Homeowners Insurance: Replacement Value and the 80% Rule

If your homeowners insurance covers less than 80% of your home’s replacement value, your insurer may only pay a proportionate share of any loss — leaving you responsible for a significant gap. Rising home values and capital improvements such as additions, renovations, or a new pool can push you below this threshold without your realizing it. Review your coverage limit relative to current replacement cost, and notify your insurer of security systems, smoke detectors, and fire extinguishers that may qualify for premium discounts. For condominiums, check for gaps between the condo association’s master policy and your individual coverage.

Automobile Insurance: Deductibles, Coverage Levels, and Family Drivers

A purchase or sale of a vehicle is a natural trigger to shop coverage across carriers. Review whether your collision and comprehensive coverage remains appropriate relative to the current market value of your vehicle. Consider whether adjusting your deductible makes sense given your emergency fund, risk tolerance, and any minimums set by your auto loan or lease provider. If you have children on your auto policy, check eligibility for good student discounts and part-time driver discounts, and clarify at what age they will need to be moved to their own policy.

Rental Properties and Renters Insurance

If you rent your residence, renters insurance protects your personal property and provides liability coverage — review existing limits and deductibles if you already have a policy, or purchase one if you don’t. If you own rental properties, ensure that both property damage and liability coverage are adequate, and consider additional coverage for vandalism or loss of rental income due to a covered event. When liability protection is a primary concern for a rental property, an LLC structure may also be worth exploring alongside insurance solutions.

Personal Property: Scheduling High-Value Items

Standard homeowners policies impose sub-limits on specific categories of personal property — including jewelry, antiques, collectibles, firearms, coins, and cash — that may be well below their actual replacement value. Create a detailed inventory of personal property, which may also be required to prove ownership in the event of a claim. Items whose value exceeds standard policy sub-limits should be individually scheduled as endorsements to your policy to ensure full replacement cost coverage.

Umbrella Insurance: Bridging Liability Gaps

If your auto and homeowners liability limits are insufficient relative to your net worth and lifestyle, an umbrella insurance policy can provide a cost-effective layer of additional coverage — typically $1 million or more — that activates after underlying policy limits are exhausted. This is particularly important for those with significant assets, high-traffic homes, rental properties, or teenage drivers. Review whether your current liability coverage across all P&C policies is commensurate with your total exposure.

Other Coverage to Review: Specialty Policies and Business Insurance

Specialty policies such as earthquake, flood, or identity theft insurance may be relevant depending on your location and circumstances. Your homeowners or auto policy may already include identity theft coverage — check before purchasing additional coverage. Business owners should review buy-sell agreements, business continuation insurance, and business overhead expense insurance as part of their overall risk management review. Bundling multiple policies with a single insurer can also yield meaningful premium savings and simplify the review process.