Fall Is Right Around the Corner: Is It Time for an Insurance Review?
As summer winds down and fall approaches, many New Jersey families and businesses start preparing for a change in weather and a busier end to the year.
It is also a good time to review your insurance.
Insurance policies should change as your home, vehicles, business and responsibilities change. A quick review before fall can help uncover outdated information, insufficient limits and optional coverages you may not currently have.
Fall Insurance Review for Homeowners
Update your home’s replacement cost
Your homeowners coverage should reflect the estimated cost to rebuild your home—not its current market value.
Let your insurance agent know if you recently:
Renovated a kitchen or bathroom
Finished your basement
Added a deck, shed or detached structure
Replaced your roof
Installed a pool
Made another major home improvement
Renovations and rising construction costs can affect the amount of coverage needed to rebuild after a covered loss. The New Jersey Department of Banking and Insurance recommends reviewing homeowners coverage annually and updating it after improvements.
Review water backup coverage
Falling leaves and heavy rain can overwhelm gutters, drains and sump pumps. Standard homeowners insurance may not automatically cover water that backs up through a sewer or drain or overflows from a sump pump.
Water backup coverage can often be added as an endorsement. Homeowners with finished basements should pay close attention to the coverage limit, since flooring, furniture, electronics and other belongings can add up quickly.
Check service line coverage
Homeowners may be responsible for underground water, sewer, electrical and other utility lines located on their property.
Service line coverage may help pay for excavation, repairs and landscaping restoration when a covered underground line is damaged by causes such as tree roots, corrosion, freezing or mechanical failure.
This coverage is not always included in a standard homeowners policy.
Ask about equipment breakdown coverage
Heating systems, water heaters, electrical panels and major appliances can be expensive to repair or replace.
Equipment breakdown coverage may help after certain sudden mechanical, electrical or pressure-related failures. It is not a maintenance plan and generally does not cover age or normal wear and tear, but it can provide useful protection for qualifying breakdowns.
Review personal property and valuables
Take a few minutes to update your home inventory. Photograph each room and keep records for furniture, electronics, jewelry, collectibles and other valuable items.
Standard policies may place special limits on jewelry, artwork and certain other property. Higher-value items may need to be listed separately.
Check your personal liability limits
Pools, trampolines, dogs, teenage drivers and rental properties can increase your liability exposure.
Review the liability limits on your homeowners and auto policies. If you have significant assets or simply want more protection from a serious lawsuit, ask whether a personal umbrella policy makes sense.
Prepare Your Home and Vehicles for Fall
Insurance is only one part of seasonal preparation. Preventive maintenance can reduce the chance of a loss.
Before colder weather arrives:
Clean gutters and downspouts.
Trim weak branches near your home and driveway.
Inspect the roof for missing or damaged shingles.
Service your furnace and heating system.
Test smoke and carbon monoxide detectors.
Check the sump pump and battery backup.
Inspect chimneys and fireplaces before use.
Remove outdoor hoses before freezing temperatures.
Keep sidewalks, steps and railings in good condition.
Check tire condition, lights, brakes and windshield wipers.
If you remove comprehensive coverage from a stored or older vehicle, remember that liability-only insurance will not cover damage to your car from falling trees, flooding, theft or certain weather-related events.
Fall Insurance Review for Business Owners
Fall is also a smart time for businesses to review policies before year-end planning begins.
Update payroll, sales and business operations
Commercial insurance premiums may be based partly on payroll, sales, employees, vehicles, subcontractor costs and business activities.
Tell your agent if your company has:
Hired employees
Increased payroll or sales
Added a new service
Purchased equipment
Added vehicles or drivers
Moved or opened another location
Begun working in new states
Started using subcontractors
Signed larger contracts
Accurate information helps prevent coverage problems and major audit adjustments.
Review commercial property limits
Building materials, equipment, furniture, inventory and machinery may cost more to replace than they did when the policy was written.
Businesses should review building and business personal property limits, especially after purchasing equipment, making renovations or increasing inventory for the fall and holiday seasons.
Check business income coverage
Property insurance may help repair a building after a covered loss, but how would the business handle lost income while repairs are underway?
Business income coverage may help replace certain lost income and pay eligible continuing expenses when operations are interrupted by covered property damage. Review the limit and the length of time the coverage may apply.
Review commercial auto and driver information
Confirm that all business vehicles and regular drivers are properly listed. If employees use personal vehicles for errands, deliveries or client visits, ask whether hired and non-owned auto liability coverage is needed.
Businesses should also have a process for checking driver records and reporting new drivers promptly.
Look at equipment and cyber risks
Businesses often rely on computers, machinery, refrigeration, heating systems and other essential equipment. Commercial equipment breakdown coverage may help after certain mechanical or electrical failures.
Cyber insurance should also be reviewed. A small business can experience a data breach, payment fraud, ransomware attack or business email compromise just as easily as a larger company.
Contractors should review job requirements
Contractors preparing for fall and winter projects should review:
General liability
Workers’ compensation
Commercial auto
Tools and equipment coverage
Commercial umbrella
Contractors Pollution Liability
Bonding requirements
BIS Improved Insurance can also assist contractors who need bid, performance or payment bonds for upcoming jobs.
Do Not Wait Until After a Loss
The best time to review insurance is before you need to file a claim. Coverage changes may not be available once a storm is approaching or after damage has already occurred.
BIS Improved Insurance helps New Jersey families and businesses understand what their policies cover, identify possible gaps and compare options from multiple insurance companies.
We serve Morris Plains, Morristown, Randolph, Roxbury, Denville, Parsippany, Succasunna and communities throughout Morris County and New Jersey.
Contact BIS Improved Insurance to schedule a personal or commercial insurance review this fall.
Give us a call to get started reviewing your insurance policies (201) 953-0896
Coverage varies by insurance company and policy. All claims are subject to policy terms, conditions, limits, deductibles and exclusions.
