A review of your home insurance policy should be a regular occurrence, but the question is, when should I review my home insurance policy? There are several answers to this question as there are many different instances in which you should perform a home insurance policy review.
Perform a Home Insurance Policy Review Once a Year
As a general rule, you should perform a home insurance policy review once a year, even if there have not been any significant changes in the past year. The first reason is to simply make sure all your information is correct. Incorrect information can lead to you paying higher than normal rates, so a few minutes verifying all information is well worth the trouble. Secondly, in a year’s time, circumstances may have changed enough that another insurance provider may offer better rates.
Perform a Home Insurance Policy Review After Home Improvements
If you are in the process or have just finished renovating your home, a homeowners insurance policy review will be in order. Home Improvements will change the value of the home and may also increase the safety and security of the home. All of which may mean a reduction in homeowners insurance rates. Renovations that increase the value of the home will require an increase in the amount of replacement cost you need on the policy and thus will result in a slightly higher premium, but you will need the added protection.
Home Insurance Policy Review After Significant Changes to Home Contents
The in-home contents inventory included on your policy is an important element of your coverage. It is also the one most likely to change. If you add or take away significant items from this inventory, you should inform your homeowners insurance company. In most cases, you have a total amount of coverage for your inventory list that will cover specific items up to a certain amount. If you need to go over this amount, you need to get in touch with your insurer. If you are adding or taking away an item that is more than $1,000, you may have to include changes to the scheduled personal property portion of the home insurance policy as well. Of course, a policy review will be in order if these changes are significant.
Home Insurance Policy Review After Changes in Liability
One thing that often goes unnoticed when it comes to home insurance is liability coverage. The amount of liability coverage you must carry or that you should carry can change depending upon the home and the items in and on the property. For instance, a pool, trampoline or certain dog breeds may force you to purchase higher liability limits or add special riders to the policy for liability coverage of those specific risk factors. As soon as these items or similar items are added to the home or property, you should inform your home insurance company and be sure your policy and rates reflect these changes.
Rate Quotes as a Part of a Home Insurance Policy Review
At the time of your home insurance policy review, it only makes sense to go ahead and get a few online rate quotes. The changes you have made and the time that has gone by may have affected which homeowners insurance company can now offer you the best combination of coverage and rates. The quotes take only a few minutes to get and can make the difference in getting the best rates available for the homeowners insurance policy you need.