Maintaining a home, which is one of the most valuable assets for most Americans, is a continual process. Ensuring your home insurance provides adequate coverage for your home is an essential component of that maintenance process because it guarantees that your home is protected against damage caused by accidents, natural disasters, and other covered perils. The value of your home and its contents continually changes as you improve and update your home as well as experience significant changes in your personal life. Therefore, it’s essential that you regularly review your homeowners’ insurance policy to ensure that it adequately covers your home.
Here are seven instances when you should review your home insurance policy.
You Remodel or Make Improvements
A custom kitchen, new bathroom, revamped outdoor space, hardwood floors, or any other home improvements will likely increase the value of your home. These changes can improve the livability and functionality as well as increase the replacement expenses of your home. Therefore, when you remodel or make major home improvements, you should objectively estimate the value of such improvements and adjust your existing insurance policy accordingly.
You Shift Mortgage Companies
If your home is financed, you’re likely required to have a home insurance policy. Typically, your mortgage company will pay the insurance bill, and then add the payment to your mortgage bill (it’s usually listed as “escrow”). If for whatever reason, you shift to a different mortgage company, you should avail that information to your insurer so that there aren’t any gaps in your insurance payments. A lapse in homeowners insurance coverage can be ruinous because if a covered peril occurs within that period, you won’t be compensated for the potentially catastrophic damage caused.
Your Home Insurance Rates Seem Too High
If you haven’t evaluated the various home insurance options for a while, you might be wondering if your current policy is the most cost-effective option out there and whether it’s ideal for you. In this case, you should review your insurance and assess whether there are more cost-effective options available for you.
You’ve Made Improvements to Your Home
If you’ve installed a top-range burglar alarm system or installed a safer and more efficient plumbing, electrical, or heating system, you may need to inform your insurance company to find out whether or not you qualify for any discounts.
Significant Lifestyle Changes
Significant changes in your lifestyle can impact your home insurance needs. For instance, when people move out or in, they usually carry their valuables with them, meaning you need extra coverage if there is a sizable shift in the value of the contents of your home.
Start a Home-based Business
If you opt to start a home-based business or work from home, you may need to talk to your insurer to determine whether you need more home insurance to cover your business operations. Depending on the scale and type of business, you may even need to carry an extra commercial insurance policy to sufficiently cover your assets and equipment.
Renting Your Home
If you decide to rent out your entire home or part of it, you need to talk to your home insurance provider to find out if your policy covers the damage and losses that occur within the rental period. There are significant differences between owner and tenant-occupied policies. Your insurance agent should be your point of contact to help explain the differences, and guide you to secure the appropriate policy.
Conducting regular home insurance reviews will ensure your home is adequately protected in case you need to file a claim. If you need the right home insurance near you, our experts at Knight Insurance Services will help you find a policy that suits your needs.