Life is full of exciting changes, and as they happen, it’s important to keep your insurance up to date. From renovating your kitchen to installing a gazebo in your backyard, your homeowners policy should align with everything it has to protect. So when exactly should you review your homeowners insurance? Here are nine top cases when you should check with your agent and review your homeowners insurance policy to make sure you’re adequately covered.
renewal date. A good time to review your homeowners insurance policy is at the renewal date. A home insurance policy usually lasts one year. A renewal statement will be sent to you a few weeks before your renewal date. If you choose to just pay your bill, most insurance companies will automatically renew your policy.
Reading: How long does home insurance last
our advice? take a good look at your policy before you simply pay the bill and renew it. double check that all information is accurate, from your coverage amount and deductibles to your address. once you do this, you can decide if you want more protection based on changes to your home or personal property during the year.
Even if there have been no major changes during the year, call your agent and make an appointment for a personal insurance review. It won’t take long to review your policy. Plus, you never know what you’re going to find or what new coverage we have that could benefit you!
New Valuables. If you’ve purchased new valuables in your home, like expensive jewelry or a flat-screen TV, be sure to add them to your household inventory and update your policy to reflect the new values. The value of your belongings adds up faster than you think, so it’s important to understand how much coverage you need to adequately cover your personal property.
Now is a good time to check if you have replacement cost value (RCV) coverage for your valuables. rcv covers your belongings for the cost of replacing them with items of the same type and quality, without any deduction for depreciation. Remember, your standard homeowners policy may only have actual cash value (ACV) coverage, which would cover you only for the current value of your personal property, not what it would cost to replace it.
Also, did you know that certain types of property may have limited coverage under your standard policy? for example, items such as your jewelry, gemstones, watches, and furs have a coverage limit of $2,000. This means that in the event of a disaster like a fire, you will only receive up to $2,000 to cover all those items. That’s why it’s a good idea to consider itemizing certain valuables, like your new ring, not only to increase the amount of coverage, but also to expand the types of losses covered. Detailing your jewelry is a good idea if you want peace of mind that you’ll be able to cover your ring no matter the situation. are you afraid of losing it? Unfortunately, your standard home insurance policy won’t cover it. But if you get extra coverage by itemizing it, you’ll be able to rely on your insurance to help cover the cost of replacing your ring! Learn more about protecting your jewelry.
outdoor additions. Improvements to your property, such as a storage shed, gazebo, fence, or pool, are noteworthy outdoor additions that should prompt you to review your homeowners policy. these types of additions are known as other structures and are not always included in your standard policy unless you specifically purchase the coverage.
With Other Structures coverage, you can choose to have one amount that covers all the buildings and structures you own (general coverage), you can choose which buildings or structures you want covered and the appropriate coverage amounts for each (general coverage). scheduled). coverage), or you can opt out of this type of coverage altogether.
Renovations or additions. Renovations or additions to your home can increase the cost to repair or rebuild it. So once your makeover is done, especially those big kitchen or bathroom updates, make sure your home insurance policy is up to date and provides enough coverage in case the unexpected happens. Check out our tips to save on home remodeling and see an estimate of what it would cost to remodel a bathroom.
What coverage should you consider once you complete your renewal? You probably bought some new appliances, like a refrigerator or stove, to go with your beautiful new kitchen; Make sure your personal property coverage amount is up to date to protect your new belongings. And since you renovated part of your home, chances are your home’s value has gone up. You’ll want to review your homeowners coverage limit so that, in the event of the unforeseen, you have the right amount to repair or rebuild your home.
Also, if you’re moving during renovation, you can purchase a home undergoing renovation, repair or remodeling, which provides coverage against theft of building materials while you live elsewhere. your agent can help you add and drop this coverage.
Newly finished basement. If you’ve completed a basement renovation, your new digs may require additional water reservoir coverage. This will help protect your new furniture, rugs, and other personal property in the event a drain backs up or a sump pump fails.
And, similar to the above, your renovated basement could have some new furniture to finish off the space, and your home’s value will likely increase. Make sure your home and personal property coverages are up to date.
Smart home security upgrades. We love to see you’re proactively protecting your home and family, and we’ll reward you for it too! If you equip your home with qualifying smart home devices, such as a frontpoint home security system, video doorbell, smoke/fire detection, water leak monitoring, or burglary protection, you may qualify for a discount for homeowners. Contact your agent to find out how you can lower your policy costs.
fun stuff. Be sure to let your insurance company know if you’ve added anything, like a pool, trampoline, hot tub, or swing set, so you’re adequately covered in the event of an accident. accident. If you add these types of enhancements that are especially attractive to children, they are considered an “attractive nuisance” and you could be liable for any harm to a child, even if they are trespassing on your property.
Your liability insurance protects you from lawsuits and expensive medical bills if someone is injured on your property. That’s why any additions, like the examples above, require a check of your policy’s liability limit. If your liability limit isn’t high enough, you may choose to purchase umbrella insurance, which provides an extra layer of coverage above the liability limit of your standard homeowners policy.
new pet. If you plan to bring Fido home to become the newest member of the family, be sure to let your insurance company know. In the event that Fido takes an unexpected bite out of someone, you’ll want to make sure you’re well covered. Here’s more information on dogs and homeowners insurance.
Property inflation adjustment. Typically, your insurance company automatically adjusts your policy to keep up with construction cost inflation, but double-check just to be sure. If construction costs are rising, you want to make sure your insurance coverage stays the same.
Reviewing your homeowners insurance doesn’t have to be a time-consuming task. A quick conversation with your american family agent will help you make sure your policy meets your needs. Learn about homeowners insurance by reading questions to ask your agent and check out our homeowners coverages to stay up to date on all the ways you can stay protected.