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Military Finances 101: Have You Updated Your Home Insurance Policy? Thumbnail

Military Finances 101: Have You Updated Your Home Insurance Policy?

Insurance Managing Your Finances

By Joseph Brown, PhD, CFP®

I don’t know about everyone else but updating the totals on my home insurance policy is not normally at the top of the things I like to do during the summer.  And the reality is that because most Americans move during the summer, especially those of us in the military, your home policy is probably due to renew soon.  With the high inflation we have seen in the last few years you should make sure that you have increased your coverage.  Let’s talk about what things you should verify:

  1. Dwelling coverage – this is the amount that it will cost to rebuild your home if it was to be destroyed.  Remember that this should cover the cost of the dwelling but not the cost of the land.
  2. Personal Belongings – this is to replace any possessions that you have in the home.   It is normally set as a percentage of your dwelling coverage.  This section has some strong limitations on collections or high value items.  You could possibly need a separate policy on things like valuable jewelry, and collections.
  3. Other Structures – covers the cost for loss of other structures on your property.   Anything that is not connected to your house.
  4. Loss of Use – This is money to help you with rental and other expenses while you rebuild/repair your house.
  5. Personal Liability – This is in case someone sues you for bodily harm and damage.
  6. Deductible – How much you must cover before the insurance will begin covering a loss.

 Finally, one additional coverage that I normally suggest that everyone get is water backup or sump pump overflow.  If you one of these things occur it is so much better to be able to call someone to deal with it rather than having to do it yourself!

So, my question for you is – when was the last time you updated your home insurance coverage?

Military Finances are Different

As a member of the military community, you know that your finances are different from those of your civilian counterparts. This is especially true when it comes to protecting your home and assets through insurance. Frequent moves, deployments, and the unique benefits and tax treatment you receive as an Active or Retired Senior Military Officer or NCO can all impact your home insurance needs. To ensure that you have the right coverage in place, it's essential to work with a financial advisor who understands the complexities of military finances. If you'd like to find out how we help people just like you, use the button below to schedule a free initial consultation.

If you found this article useful, you might like the following blog posts:

Military Finances 101: Titling your Home

Military Finances 101: 8 Often Over-Looked Costs of Buying a Home

5 Home Renovations That Can Affect Your Insurance

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