Most homeowners have a home insurance policy. Yet, it is important that you do not just forgot about your policy. When you made your first inquiries about home insurance, you may have had many choices to make regarding deductibles, types of coverage and various other issues. However, things change as time passes and you want to be sure that your insurance coverage is always adequate for your current situation. Therefore, it is imperative that you re-evaluate your policy often.
Monitor Policy Changes Made by the Insurance Company
The Insurance Information Institute advises reconsidering your insurance policy at least yearly and any time that major changes occur. When you receive your yearly renewal notice from your insurance company, check for any changes the company has made, and determine if they may have an effect on your situation.
Lower or Raise Your Deductible to Suit Your Needs
If your financial condition has improved since you took out your insurance policy, you may want to lower your deductible amount so you would get a greater benefit in the event that you should submit a claim. However, you may need to increase your deductible amount to lower your premium.
Add Replacement Value to Your Policy
If you currently do not have replacement value insurance, consider adding it to your policy. If your insurance covers only the depreciated value of your personal possessions, you will not receive enough compensation from a claim to replace them. You may think that they are not worth much, but if you had to replace them all at once,it would be difficult without adequate insurance.
Include Major Home Improvements or Expensive Possessions
When you make major improvements or additions to your home, its value increases, that should be reflected in your insurance policy.Likewise, if you purchase or receive expensive or valuable items, you
can get an endorsement for them or raise the amount of your insurance for personal possessions.
Prepare for Basement Flooding
If your basement was unfinished when you took out your homeowners policy but now it is finished, you should check your policy to be sure your flood insurance is adequate. You may need to purchase arider to
cover basement flooding if that is not part of your current policy.
Get Additional Liability Coverage when Necessary
Lifestyle changes can require changes in insurance policies as well. If you choose to operate a business from your home, you may need additional insurance for your products or equipment as well as business liability. Similarly, if you have acquired a dog considered potentially dangerous, you may need to have additional liability coverage.
Adapt to Lifestyle Changes Such as Marriage, Divorce and Children Moving
If you get married or divorced, or if children move out of your home,there may be a significant change in the personal possessions in your home. After such an occasion you will need to evaluate whether your
insurance policy needs amending.
Safety or Security Features Could Mean Discounts
When you install certain safety features or security devices and alarms in your home or improve the electrical wiring, heating system or plumbing, you may be eligible to receive a discount on your premium.
Your insurance agent can be a great help for you as you consider how your insurance needs may have changed. A knowledgeable agent will point out the options available to you and help you to make the best
choices for your particular circumstances. Knowing that you have adequate insurance coverage to protect your valuable possessions will give you peace of mind and a feeling of security.
Blake Simons is a content writer for Home Insurance, where you can research, comparison shop, and get home insurance quotes that fit your needs. In his free time, Blake enjoys reading, hiking, and spending time with his children.