How Often Should You Review Your Home Insurance?
Insurance policies can be confusing, especially for homeowners who have more than one policy. There can be accidental overlaps or gaps in coverage, resulting in paying for more or less than what you need. Homeowners should get into the habit of reviewing their home insurance policies at least twice each year. But there are a couple of other times when reviewing your home insurance policy is a good idea too:
When it’s time to renew your policy.
It can be easy to just pay the renewal bill when it arrives, but this is actually the perfect time to review your policy beforehand so that you can contact an insurance agent about any premium or coverage questions like:
- Am I currently receiving all the discounts available for me?
- Has my provider made any coverage changes?
- Should I shop around for other providers?
- Are there separate deductibles for specific risks on my policy?
- Can I save money by raising my deductible?
- Are all of my personal possessions properly insured?
- Does my coverage need to be increased for structural reasons or liability?
When you’ve made alterations to the home or major purchases.
Have you recently done some remodeling and added or expanded a room? Built a new deck? Bought a new TV? Calling your insurance agent should be one of the first things you do next because adding home improvements is a great time to review your insurance policy.
This is also a good idea if you or someone in your household has received an expensive gift like a computer, artwork, or even an engagement ring. You can then talk to your agent about increasing the insurance you have for your personal possessions in case they are damaged or stolen.
When your home is made safer.
Anytime you install a system to make your home safer like a fire alarm or security system, it is a good idea to call your agent and review your policy because many insurance companies will offer discounts for homeowners who have taken steps to have their home more protected. Upgrading your plumbing or electrical systems if your home is very old can qualify you for a discount a lot of the time as well because that is considered making the home less of a hazard.