New Year Insurance Checklist: Review Your Coverage Before 2027
A new year is the right time to make sure your insurance still fits your life. Policies that were accurate when you bought them can drift out of alignment — home values change, families grow, income increases, properties are renovated, cars are replaced. The coverage gap that results usually isn't visible until a claim makes it unavoidable. Spending 30–60 minutes on this checklist before January 1 can protect you from a surprise in 2027.
Home Insurance Checklist
1. Is your replacement cost coverage current?
California construction costs have continued to rise. The cost to rebuild your home today is likely higher than it was when you last set your coverage limit — even if your home's market value has stayed the same. Ask your agent to run a current replacement cost estimate (using tools like CoreLogic or Marshall & Swift) and compare it to your dwelling coverage limit. Closing a 10–15% gap now prevents a major shortfall after a total loss.
2. Do you have extended or guaranteed replacement cost coverage?
Extended replacement cost coverage provides a buffer — typically 25–50% above your stated limit — in case rebuilding costs spike after a widespread event (like a wildfire that drives up construction demand across an entire region). Guaranteed replacement cost goes further, paying whatever it actually costs to rebuild without a cap. If your policy doesn't include one of these, ask about adding it.
3. Did you renovate or improve your home in 2026?
Kitchen remodel, bathroom addition, new deck, finished basement, solar installation, ADU construction — each of these increases the cost to rebuild your home and should be reflected in your coverage. Review any permitted improvements from this year and update your dwelling limit accordingly. If you added an ADU, confirm your policy covers it as a separate structure and addresses any rental income exposure.
4. Are you insured for the right perils?
California homeowners should review whether they have the perils coverage their location warrants:
- Wildfire risk: If you're in or near a High Fire Hazard Severity Zone, does your policy explicitly cover wildfire? Is your coverage standard market or FAIR Plan? If FAIR Plan, do you have a companion DIC policy for full coverage?
- Flood: Standard homeowners policies exclude flood. If your property is in a flood-prone area, a separate NFIP or private flood policy is necessary.
- Earthquake: Also excluded from standard policies. CEA earthquake policies are available throughout California; private market options exist in many areas.
5. Do you have a current home inventory?
A recent video walkthrough of your home's contents is the simplest step most homeowners skip. Opened closets, electronics, appliances, furniture, jewelry — a 20-minute video stored in cloud backup provides exactly the documentation you'll need after a fire, theft, or water damage claim. If the last time you did this was before 2025, do it now.
Auto Insurance Checklist
6. Is every driver in your household listed?
All licensed drivers who regularly use any household vehicle — including teen drivers who earned their license in 2026 — must be listed on your policy. Unlisted household drivers create a material misrepresentation that can result in claim denial. This applies even if a teen driver primarily uses only one of several household vehicles.
7. Do all your vehicles have the right coverage?
Review each vehicle on your policy:
- New or leased vehicles: confirm comprehensive and collision are in place (required by lenders and lessors)
- Paid-off older vehicles: evaluate whether collision coverage is still cost-effective relative to the vehicle's current value
- New EV or high-value vehicle: confirm the agreed value or stated amount is accurate for current market values
8. Are you using your vehicle for rideshare or delivery?
If you drive for Uber, Lyft, DoorDash, Instacart, or any other platform, your personal auto policy likely excludes coverage during commercial use. A rideshare endorsement or commercial auto policy is required. Review our rideshare insurance guide for details on how coverage applies during each period.
9. Does your mileage reflect how you're actually driving?
If your annual mileage has decreased — working from home more, retired, or a second vehicle taking more of the driving load — reporting lower mileage can reduce your premium. Some carriers offer low-mileage discounts; others have pay-per-mile programs that can be significantly cheaper for occasional drivers.
Business Insurance Checklist (If Applicable)
10. Has your business grown, changed locations, or hired new employees?
Business insurance should reflect current operations. New employees, additional locations, new equipment, expanded services, or increased revenue can all affect what coverage you need. Workers' comp premiums are based on payroll — if your team has grown, your policy needs to be updated at renewal. If you've started working from home for your business, verify your homeowners policy's home business exclusions and consider a home business endorsement or separate business owner's policy.
11. Does your liability coverage match your current risk profile?
California's legal environment makes business liability exposure a serious consideration. Review your general liability limits, professional liability (E&O) coverage if applicable, and employment practices liability — particularly for California employers subject to the state's extensive wage and hour, discrimination, and leave laws.
Umbrella and Liability Checklist
12. Do you have an umbrella policy?
A personal umbrella policy extends your liability coverage — typically adding $1,000,000 or more above the limits of your underlying home and auto policies — for $200–$350 per year. If you don't have one, the new year is the right time to add it. For most California families, the events that trigger umbrella-level claims are rare but catastrophic: a serious auto accident, a significant injury on your property, or a lawsuit.
13. Are your umbrella limits still adequate?
If your wealth, income, or assets have grown significantly, your umbrella limit from several years ago may not be sufficient. A $1,000,000 umbrella is a reasonable starting point, but if your net worth exceeds $2–3 million, consider $2–3 million in umbrella coverage to ensure your assets are protected.
Schedule Your 2027 Coverage Review
Stonecrest Insurance has served California families and businesses since 1999. We work with clients in Sacramento County, Placer County, El Dorado County, Fresno County, and throughout the Central Valley. A year-end policy review is something we do at no charge for existing clients and new prospects alike — it's simply the right way to start the year.