Homeowner’s insurance is an essential to most lenders and other financial players that help in making the purchase of a home, so most homeowners have to go through the process of finding a policy that suits their needs when they initially buy. However, if it has been a while since you financed a home and selected an insurance policy to cover it, it is within your best interest to conduct a thorough review of your plan and what it covers. This article will begin our discussion of homeowner’s insurance by determining how often homeowners should review their policy, as well as the benefits to doing so.
When is it time to review your homeowner’s insurance?
Since coverage and home status can change over the course of a year, it is in a homeowner’s best interest to conduct an annual review of their insurance plan.
What does a thorough review entail?
When conducting a thorough review of your homeowner’s insurance, you should be sitting down with all financial players (spouse or partner, etc.). and going over each section of the policy to see what is and is not covered. Take care to assure that you have enough coverage for all of your assets, and catalog the changes to your home that have been made over the course of the year — personal belongings, renovations, etc. Avoid having to pay the difference in the unfortunate event that your home is damaged.
In addition, check how much financial protection you have so that you can get an idea of whether or not you will be able to withstand a claim filed against you if there is an injury or incident that could result in your being sued.
Benefits to an annual policy review
- Changes with time: Homes fluctuate in price over time. Your home may be more expensive now to rebuild than it was at the time of purchase, and having a large gap in your coverage can lead to inability to recover from losses. In addition, homeowners naturally add assets to their home over time — think new furniture or appliances, landscaping, swimming pools, etc. If you have made renovations that would probably impact the value of your home, assure that your coverage is matching those current needs.
- Protection and prevention: As your assets increase, so does your amount of risk if you get involved in a lawsuit; you have more to lose. Adequate liability coverage is important to have in these cases.
New safety features and preventative measures, such as alarm systems, may qualify you for discounts on your policy because they decrease risk of loss in your home. If it applies, check this possibility when you are conducting your annual review. While you’re at it, ask your agent if there are any other discounts that your home may now qualify for that didn’t apply before, and cash in on those.
An annual review is an essential for homeowners who want to stay in-the-know about their home’s insurance coverage, offering clarity and peace of mind. In our next article in this series, we will make the process even easier for you with our comprehensive checklist of factors to watch out for when reviewing your homeowner’s policy.
Smyrl Insurance has been serving Montgomery County and the surrounding community for over 65 years, and we make it our mission to put homeowners’ minds at ease. Our customers know that they are in good hands, no matter the circumstances they may face. Give us a call today or contact us with any remaining questions about homeowner’s insurance.