How Do You Renew Your Home Insurance? 

A:

Quick Answer

When renewing home insurance, a homeowner double checks to see what kind of insurance he has, asks his insurance provider how much coverage he needs, and finds out if there's a way to lower his premiums, according to HouseLogic.  It's best that a homeowner review his policy with his agent at least once a year, before his insurance is slated for renewal, to ensure he and his home and everything in it are fully protected. 

When checking what kind of coverage is included on a home insurance policy, a homeowner should determine whether he has replacement cost coverage or actual cash value coverage, notes HouseLogic.  Replacement cost coverage takes care of the cost of what it would take for the policyholder's property to be completely rebuilt or to repurchase his belongings, while actual cash value coverage considers how much a covered item loses its value over time. 

A homeowner's coverage needs can change from year to year, making it important to know what needs to be added or removed from a policy, according to HouseLogic.  Rather than basing the amount of coverage needed on the total value of a home, it's better to base it on how much it's likely to cost to completely rebuild the home.  It's best to check on the most up-to-date local construction costs in this step of the renewal process.