How Often Should You Review Your Homeowners Insurance Policy

Once you’ve started your homeowners insurance policy you can’t just forget about it. There are several times throughout your life when certain events will trigger the need to review your homeowners insurance policy.

The first is whenever your policy comes up for renewal on its own. When this happens don’t just pay the bill and forget about your coverage again. Make sure you look over your policy and call your agent if you have any questions or concerns about your homeowners insurance policy and what it covers. Some things to consider when looking over your policy are if the company has made any changes over the last year, if you want to raise or lower your deductibles, if you have all the available discounts, if you need higher limits on your coverage, if you need to add any additional policies and if you could potentially shop around for a better deal.

Another circumstance for reviewing your homeowners insurance policy is if you’ve made any major purchases or alterations and improvements to your house. If you’ve made a major purchase like a computer or received any large gifts such as jewelry make sure that you have the correct amount of coverage for these items. If not, talk to your agent about raising your insurance amount or purchasing a floater for broader coverage of the items under your homeowners policy.

Major improvements such as adding a new room to your home requires that you report the increase in square footage to your home or you run the risk of being underinsured. This also includes additions outside of your new home such as a pool or tool shed. Keep your receipts for any work like this that’s been done in case your insurance company needs to see them.

You should also review your homeowners insurance policy if you’ve made your home safer in any way. If you’ve finished your basement, replaced electrical wiring, added a security system, or upgraded your heating or plumbing system you should let your insurance company know. These improvements may help you qualify for a discount.

Finally if you have any major lifestyle changes you’ll want to review your homeowners insurance policy. A marriage, divorce, birth or adult child moving out of the home can all affect your homeowners insurance. As people come in and out of a home they take their belongings with them and this may cause a need for an increase or decrease in your coverage. Even a dog being adopted into your home can affect your policy depending on the breed. Additionally, if you or someone in your house starts a home-based business this could lead to a need for extra coverage for the business liability and equipment.

Each time any of these events happen in your life call you homeowners insurance company and talk with them about the state of your policy and how it could be affected. Then you won’t have any loose end in case of an accident.