A homeowners insurance policy review is an important part of keeping your policy up-to-date and preventing yourself from being unprepared and underinsured. It can also help you keep the savings going as it is a good time to get a few rate quotes to ensure you are always getting the best available rates.
Once a Year
To begin with, you should make a habit of reviewing your homeowners insurance policy once a year. If nothing has forced you to do a review recently, one years time is enough that things could have changed with your insurance provider, or something as simple as you gaining a year of age, could mean that a different insurance company can offer you a better rate with comparable service.
If You Have Added to the Home
If you have made additions or upgrades to your home, once they are completed, you should review your policy. You should also inform your insurer that you have made these additions. They will work with you to determine how much you may need to increase coverage, if applicable. It never hurts at the same time to see if you can find a better rate by getting a few quotes to compare premiums after the upgrades and additions.
If You Have Increased Your Liability
Liability coverage often flies under the radar when it comes to your home insurance policy, but it is important nonetheless. If you have added or made changes to the property that increases your liability, you will need to take a look at your policy and talk with your agent. Things such as bringing a certain breed of dog into the family, adding a pool or putting a trampoline in your back yard can all lead to increased liability and the need to increase your corresponding liability coverage.
When You Add to Your In-home Inventory
Another important aspect of your coverage is the in-home inventory. It will usually be the thing that changes most often. If you add expensive items to your home you want to make sure they are covered. If their value puts you over your monetary coverage limits, then you will need to up those limits. If the item is expensive enough, it may require what is called scheduled personal property coverage and will have its own place on your homeowners insurance policy. Of course, the cost to insure expensive items can have a significant affect on your overall policy cost. For this reason, this is another opportune time to get a few rate quotes to see if you can find a more affordable alternative if your current provider jacks up your rates too much.
Anytime You Are Not Satisfied
This is the easy one. If you feel as if you are paying too much or you are not happy with the customer service or overall coverage, then by all means, start looking around. If you are unhappy with your coverage, review your policy to see if there are any holes that should be plugged. If you are unhappy with rates or service, take advantage of online quotes for homeowners insurance. Quotes are your best tool for use in a homeowners insurance policy review. They are free, take only minutes to get and can answer many of the questions you may have.