Having a homeowner's insurance policy in place for your home is the best protection you can have against the unknown, but once you get a policy, you should not just assume that it will always be right for you and your home. Instead, it is vital to take the time to update it from time to time. Here are three things you should understand about updating your home insurance policy.
You should do this regularly
When you purchase a homeowner's policy, it should cover all the risks you have at the time of your purchase. It is important to know, though, that your risks may change. Additionally, other things in life may also change that could impact the costs of your policy, your needs, or your risks. Because life changes, your home insurance policy needs to change at times too, and the best way to make sure you keep up with changes is by updating your policy regularly. Some people do this once a year, while others may only do this when major changes occur in life. You should determine how often you want to update your policy and then stick with your plan.
Updating your policy is vital to reflect changes in risks, value, and coverage
There are several main purposes of updating your policy regularly. The first purpose is to make sure you are covered for any changes in risk levels. For example, if you install a pool in your yard, your risks will increase, and you will need to account for this on your home insurance coverage.
Secondly, you should do this to update your policy to reflect changes in the value of your house or personal belongings. After a kitchen remodeling project, your home value might increase by $30,000, and you will need to reflect this change on your policy. Finally, you should do this to receive discounts for changes in your personal life. If you go from being single to married, you might now qualify for an extra discount.
You are free to choose a different company at any time
The other thing to understand is that you do not have to continue using the same insurance company for your home insurance. Instead, you are free to shop around for a better or more affordable policy, and this means you may want to contact other companies for quotes. If you decide to switch companies, make sure that you do not allow your policy to lapse, as this will present risks to you and your home.