view transcript

Bob Powell: Do you own a home? If so, when was the last time you reviewed your homeowners insurance policy? I bet it's been awhile. Well now, especially if you're a retiree, might be a good time to review your policy with a trusted financial planner. Why so? You want to make sure that there are no gaps in coverage well before a disaster such as a hurricane or flood strikes. In a recent article, Patty Clement of Hub International told me there are certain types of property and casualty coverages that are commonly overlooked by families in the US. What's more, she tells me that older homeowners tend to cut costs post retirement and they could be cutting the costs of important coverage if they access, direct writers online or other senior programs without a consultation. So what should you review? Well, first check whether your homeowner's insurance policy has guaranteed replacement costs.

That's the cost to rebuild your house or extended replacement costs, which is a policy that will pay more than the policy limit, usually up to 120 to 125% to cover the replacement costs of the home. Make sure you have an all risk policy too. That covers unlimited backup of sewers, drains and sump pumps. Do you have an HO-3 or an HO-5 policy. HO-5 is typically preferable. Check too whether your policy will cover either unlimited or reasonable expenses if you must move out while your home is being repaired to a loss other than a flood, you might also want to consider adding a cyber liability rider, as well. Want to learn more about how best to review your property and casualty insurance policy? Check out the retirement section of the street.com and don't forget to subscribe to Retirement Daily, which features in depth articles about retirement written by some of the nation's top financial planners, including those affiliated with the Financial Planning Association and the National Association of Personal Financial Advisors and Ed Slott's Elite IRA advisors.

Do you live an area vulnerable to hurricanes and other natural disasters? Are you a retiree looking to cuts costs? Did you happen to build an addition to your home in recent years and not tell your insurance company?

If so, you really ought to review if there are any gaps in your homeowner's insurance policy. Why so? Because there are certain types of property and casualty coverages that are commonly overlooked by families in the U.S., according to Patti Clement of HUB International Personal Insurance.

Homeowners Insurance Checklist

Check whether your homeowner's insurance policy has guaranteed replacement cost (that's the cost to rebuild your house) or extended replacement cost,

Check if you have a HO-5 or HO-3 policy?

Check what flood zone you're in. (Everyone lives in one says Clement, who spoke recently at an AICPA conference. It's just a matter of whether you live in a preferred zone or a catastrophic zone.)

Speaking of floods, check your mold limitations and purchase additional coverage if need be. And while you're at, check if you have something called an all-risk policy. That would come in handy if ever you have a backup of sewers, drains and sump pumps.

Also, especially in light of the recent Capital One data breach, check whether you should add cyber liability insurance.

By the way, 29.1% of the total U.S. population - about 94.7 million people - lived in coastline counties in 2017 about 60.2 million people lived in the Atlantic and Gulf of Mexico regions - those most vulnerable to hurricanes. Read this Census Bureau report.

For more on this and other retirement-related topics, read TheStreet's retirement section and subscribe to Retirement Daily, which publishes articles and commentary designed to help everyone plan for and live in retirement. Get more information and sign up for a free trial subscription to TheStreet's Retirement Daily.

Building Your Road to Retirement

Get more information and sign up for a free trial subscription to TheStreet's Retirement Daily

Success: Top Women Leaders Share the Keys to Business Success

Ask the Expert: Student Debt Seen at $3 Trillion in 10 Years - Expert

TheStreet Feature: Here's Something Investors May Be Missing About the Drone Revolution

Catch Up: Today's Top News Videos Below