As the months go by and a new year is upon us, many changes come about. This is true in most areas of life and is certainly true when it comes to issues dealing with homeowners insurance. These changes, in many cases, require you to make some changes or alterations yourself to remain in the best position possible to protect the financial investment in your home and do so with the least possible cost to you.
Couple Mortgage Refinance with Homeowners Insurance Overhaul
In recent months interest rates for home mortgages have fallen considerably. This has caused many homeowners to look into refinancing to cut interest costs and reduce monthly payments. This should also stimulate you to check into your homeowners insurance policy. Depending upon when you purchased your home insurance, you may in drastic need of a review and some changes. If your homeowners insurance is paid through escrow from your monthly mortgage payment, think about how nice it will be to lower that monthly payment with a reduced interest rate and a reduced premium.
Change to Home Value
Over the long haul, you can expect the value of your home to increase as long as it is well-maintained. However, in the short-term housing costs can fluctuate up and down. With a yearly review, you can adjust your coverage to match the current, estimated value of your home. This will help you whether the value of your home has increased or decreased. If decreased, you can lower the protection limit and save a bit on premiums. If increased, you will need to increase the coverage so you are not left under insured.
Changes Regarding Contents of Home
One of the most common changes that requires an update to your homeowners insurance policy is additions or subtractions to the contents of your home. You add new furniture or something to a collection of yours and you have added to what you need covered under your policy. In addition to updating your homeowners insurance policy when you add a valuable item to your home, you should do a yearly review to know if the addition or subtraction of numerous smaller items necessitate a coverage change.
Due to the numerous factors that go into calculating your rates, there are many areas in which changes can affect your premiums. If a fire station has opened up recently that is much closer to your home, then alert your insurance company. Also, if a fire station moves from volunteer to paid, then you could also see a reduction in premiums. If you have added or subtracted any other buildings on your property, then a change in coverage for “other structures” is necessary. Did a neighborhood watch recently start up for your neighborhood? Did you add any security features such as motion detecting lights? Any of these changes, and many more, can necessitate a change in premiums, sometimes resulting in reduced premiums.
Using Homeowners Insurance Quotes When Reviewing
Any changes that affect your homeowners insurance can affect which homeowners insurance company can best serve you. So, while going through the process of a mortgage refinance or a review of your policy, don’t forget to get a few quotes to make sure you are still getting the best deal. It’s free and takes only a few minutes to get multiple quotes, but the savings you may find will affect your homeowners insurance premiums from month to month.