Renewing your homeowner’s insurance policy is something you do once a year to make sure everything looks in shape for your upcoming year. We’re often comfortable with what our policy does for us, but if you made changes that affect you and your home, then we advise you to take a closer look at what your policy offers you. You might find that your current policy does not give you the benefits you need for you and your home.
Here are four tips to consider when reviewing your homeowner’s insurance policy.
Coverage on All Your Bases
You need coverage for every base you have, such as dwellings, living expenses, personal property, and liability. When you review your current homeowner’s insurance policy, it is essential to think if you have added on to any of these coverages within the last year. Did you buy a new car or a new TV? You may even find that items like these aren’t included in your current policy. You need to record all your assets before you renew your homeowner’s insurance policy.
Improvements and Repairs on Your Home
If you have made notable improvements or renovations to your home within the last year, then reviewing your policy to ensure these changes are covered is crucial. Typically, a renovation adds value to your home and checking your homeowner’s insurance for coverage helps save you any money you may have to pay out-of-pocket for the improvement to your home.
Many home improvements lessen the chance of risk in your home. These items need to be declared when taking inventory of your assets. Your homeowner’s insurance company will likely reward you with a lower premium, but it is vital to take note of what you have if that is not the case.
Significant Life Changes and New Relationships
Your life changes constantly. Often time, we don’t even realize how these changes affect our homeowner’s insurance policy. Here are some factors that impact your homeowner’s insurance policy.
- Having a child: Having a child is one of the most beautiful things to happen in your life, but baby-proofing your furniture is necessary to reduce liability.
- Engaged or newly married: Once you and your fiancé or spouse move in together, you must record your combined personal belongings. Be sure to record every important item you want to be insured. If your current policy doesn’t cover those items, it may be time to review other policies.
- Paying off your mortgage: Congratulations on finally owning your home! There may be more flexibility in your policy at this point. But, if your home insurance provider requires a maximum amount of coverage and less coverage is inadequate for your situation, it is good to search for a new home insurance policy.
Most Importantly, Timing
Taking note of your substantial life changes is essential, especially when it is the good stuff. But adding if your homeowner’s insurance covers it as an afterthought is necessary. All of these factors play a significant role in evaluating if your current homeowner’s insurance policy is the right one for you.
If you decide to switch homeowner’s insurance policies, you should submit a premium quote to your new insurance company of interest a month before your current plan expires. By having a substantial window of time, you run a lower risk of paying out-of-pocket damages and securing a new policy before your old one expires.