When to Review Your Homeowners Insurance Policy

by | Apr 30, 2020 | Home Insurance

Young couple reviewing their homeowners insurance policy
When a homeowner moves into a new home, this is the time when most people review their homeowners policy. Unfortunately, this is not the only time when you should review your policy. Any time you make a major investment like a new appliance, or make renovations, you need to review your policy. If you do not do this, you may find out the hard way there is a gap in your policy.

Here is when to review your homeowners insurance policy:

When you buy a home, make a home inventory. This inventory includes important information like the address, the listing of the home itself, the date of the purchase, and the items you purchased for the home. You will use these items to help your agent decide what policy fits best for your needs.

Review your auto insurance policy. Many companies offer a discount if you combine your auto insurance and your homeowners policy. Find out if there are other discounts available on top of the discounts you already receive.

Another important time to review your policy is during renovations and additions. Your policy may need to be adjusted to account for the increased value after your home improvements are completed. 

Did you install a pool, a new shed, or even a sprinkler system? All of these outdoor improvements are events where you need to review your policy.

Lastly, ask your agent what it might cost to insure your home for the cost to rebuild your home as opposed to the value of your home. Make sure the policy covers at least 100% of the cost to replace everything in the event of a fire or other event. Most policies cover the value of the home, but the cost to rebuild everything could be significantly lower. 

Any time there is a significant change in your home, you want to make sure your policy is up to date. Even if you haven’t made any changes in a long time, you should still review your policy at least every few years.