Is it time to Update Your Homeowners Insurance?

February 28, 2018

Many homeowners set up their homeowners insurance and then never think about it again. This could be a big mistake! You might be underinsured or overpaying and not realize it. Just like your home, you must maintain your insurance to make sure you are always properly covered and paying the right amount.

Following are the most important times to think about updating your homeowners insurance.

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After Making Changes to Your Home

Did you recently update your home? Maybe you remodeled your kitchen, added a porch, or added another bedroom. You love your home, but is it properly covered? Chances are the changes you made to your home increased its value. Does your insurance policy reflect that value?

What if your home were to burn to the ground and needed to be rebuilt? If your insurance didn’t reflect the new value of the home, you might find yourself without enough money to build the home back up to its previous state.

After Making an Expensive Purchase

Your homeowners insurance may cover your personal belongings. You may even have riders to cover the extreme valuables. But, if you purchased that policy 10 years ago and have since made valuable purchases, those items may not be covered.

After making any type of large purchase, it makes sense to go over it with your insurance agent. You can then discover if the item would be covered by your current policy. If not, you may need to increase your coverage or buy another rider.

After You Stop Smoking

If you quit smoking, good for you! You probably see lower rates on your health and life insurance as a result. Don’t forget about your homeowners insurance, though. You may not even realize that you were paying higher rates as a smoker on this policy.

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Smoking homeowners pose a higher risk too. Your habit could set your house on fire much easier than someone that does not smoke. If you quit, let your agent know so you can see if you are privy to any discounts as a result.

After You Retire

Again, you probably don’t think about discounts on your insurance after you reach a certain age, but many companies offer them. Why would a retiree get special consideration? It’s simple, they pose a lower risk.

Retirees are around the home more often, which means a lower risk of theft or vandalism. They also have more time to spend maintaining them home, which could mean a lower risk of claims. Lastly, they would be more likely to be around to see a fire if it started before it got out of hand. Not every company offers retirees discounts, but it never hurts to ask.

After You Upgrade Your Security

Today there are many ways to add security to your home. An alarm system or video monitoring are two of the most common methods. Because this helps deter thieves, it can lower your insurance rates quite a bit. Even small changes, such as a Ring Doorbell can give you as much as a 5% discount on your premium.

Today’s technology makes it much easier to not only protect your home, but lower the risk of an insurance claim. This translates into a premium discount for you and more money in your pocket.

After Adding a Risk to Your Home

You might wonder what could be risky that you could add to your home? There are many things but the two most popular are swimming pools and dogs.

While you might not want to think about increasing your homeowners insurance, it’s better than having a very serious liability claim on your shoulders. Adding a pool adds the risk of someone getting hurt or even drowning while on your property. Your insurance company must know about this addition so they can properly protect you. It’s much more expensive to deal with a lawsuit than pay higher premiums.

Getting a new dog might not do anything to your insurance premium, but your agent must know about the pet. If you neglect to let them know and your dog harms someone, you could be liable for the damages. Certain breeds may require a slight increase in your premiums, but most won’t – but again, you must be honest with your agent about what goes on in your home.

Updating your homeowners insurance is for your protection. It helps you make sure you have the proper coverage. It may also save you money depending on the situation. Think about updating your insurance every few years at a minimum. This way you always know you have the best coverage available and at the best price.

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