Is it time to update your insurance appraisal?

Many standard homeowner's policies have limited coverage for valuables, such as jewelry and collectibles, typically ranging from $1,000 to $1,500, irrespective of their actual value. To ensure accurate coverage, it's advisable to update your appraisals every 3-5 years, taking into account factors like changes in asset value, ownership, insurance coverage, market fluctuations, and policy renewal requirements. Here are some considerations to assist you in determining when to update your insurance appraisal:

Change in Asset Value: If the value of your insured assets has significantly increased or decreased since your last appraisal, it's a good indication that you should update your insurance appraisal. This is especially important for valuable items like art, jewelry, or real estate.

Acquisition of New Assets: If you've acquired new assets that are now part of your insurance coverage, you should have these items appraised and added to your policy. This ensures that they are adequately insured.

Change in Ownership: If ownership of the insured assets has changed, such as through inheritance or gifting, it's important to update the insurance appraisal to reflect the new owner and any changes in value.

Changes in Insurance Coverage: If you've made changes to your insurance coverage, such as adjusting policy limits or adding endorsements, you may need to update the appraisal to align with the updated coverage.

Policy Renewal: Many insurance policies require periodic updates to the appraisal of insured items as part of the policy renewal process. Check your insurance policy terms to see if this is a requirement.

Market Fluctuations: If the market for the type of assets you have insured experiences significant fluctuations, it may be wise to update the appraisal to ensure your coverage remains adequate.

Appraisal Requirements: Some insurance companies have specific guidelines regarding when appraisals need to be updated. Be sure to check with your insurer to understand their requirements.

Loss or Damage: In the unfortunate event of a loss or damage to insured assets, you will need an updated appraisal to determine the value of the loss and facilitate the claims process.

Regular Appraisal Schedule: Some individuals and businesses choose to have their insured assets appraised on a regular schedule, such as every three to five years, regardless of specific changes. This proactive approach helps ensure that coverage is always up to date.

It's essential to work closely with your insurance provider and follow their guidelines regarding appraisals. Additionally, consider consulting with a qualified appraiser who specializes in the type of assets you need appraised to ensure accuracy and compliance with insurance requirements.