Homeowners Policy Why You Should Review It Annually

Homeowners Policy Why You Should Review It Annually



Homeowners Policy: Why You Should Review It Annually
Most Homeowners insurance companies will simply send out a​ reminder for a​ renewal of​ your home insurance policy when the end of​ the year is​ up for your insurance coverage .​
Many will also automatically renew your policy unless you call and let them know that you want to​ change or​ cancel that policy .​
This makes it​ easy for many homeowners to​ simply begin sending in​ the next set of​ payments for another year without reviewing the policy to​ make sure it​ adequately reflects their needs for the year.
Whether you have upgraded or​ remodeled the home, added a​ deck onto the back, turned the home into a​ rental property or​ realized that you may have problems with flooding in​ your area, there are several reasons to​ review your home insurance policy every year to​ assess whether the coverage still meets your needs.
Even if​ you have just begu​n a​ new home insurance coverage policy, it​ is​ important to​ review the policy as​ soon as​ you receive it​ to​ make sure the policy has the correct coverage amounts and coverage needs you have asked for .​
Remember that this policy will be in​ place for an​ entire year and will most likely cost between $300-$2000 so be sure that you are getting what you want.
If you asked for personal liability of​ others in​ the amount of​ $100,000 and the policy only shows $50,000 don’t be afraid to​ call the insurance agent back to​ have this problem corrected .​
The problem can simply be solved by issuing a​ new policy or​ a​ policy change.
Once the year time period has expired on your current policy and you are getting ready to​ renew again, it​ is​ always a​ safe bet to​ call the insurance agent and ask if​ the replacement cost value has gone up on your home or​ on anything in​ your home.
Remember that the financial market continues to​ increase and with this rates of​ building and replacement tools will go up, so there is​ no shame in​ calling to​ ask if​ the figures on your policy need to​ be changed.
If you have done any renovation of​ the home in​ the last year, such as​ replacing countertops or​ flooring, or​ even adding on a​ deck, it​ is​ important to​ inform the insurance company of​ these changes .​
This protects you from being underinsured in​ case of​ damage or​ loss.
If you have acquired any major purchases of​ personal property, it​ is​ also important to​ contact the insurance company about changing the coverage amount on your interior belongings .​
This could include major electronics equipment like an​ LCD television, a​ personal computer or​ laptop, an​ expensive piece of​ jewelry or​ fur coat, or​ even new furniture or​ a​ new piece of​ artwork.
It is​ also important to​ review your insurance coverage policy every year to​ determine if​ you have adequate peril coverage and liability insurance .​
Although some basic plans cover certain types of​ natural disaster and others cover personal liability, you may want to​ consider adding on specific insurance clauses for flooding, hurricanes, or​ tornados if​ you live in​ a​ high risk area.
If you started a​ plan out with little or​ no hurricane insurance but realized that the previous year brought major hurricanes to​ your area, then you may want to​ reconsider the amount of​ coverage .​
As well, some policies do not require homeowners to​ have personal liability insurance but this is​ a​ good idea if​ you are planning on having others in​ your home quite often.
This could include construction workers who are remodeling a​ kitchen or​ bathroom or​ even a​ babysitter or​ housekeeper .​
You will also want to​ change your policy if​ your children are starting to​ get older and invite over friends to​ play in​ the yard or​ to​ spend the night .​
Personal liability insurance will cover any accidents that happen while others are in​ your home.
One final reason to​ review your insurance policy each year is​ to​ assess discounts or​ possible price quote deductions that you may be able to​ receive .​
When you purchased the home it​ may not have had a​ security system installed, fire sprinklers or​ been equipped with up to​ date smoke and carbon monoxide detectors.
But if​ you have installed this equipment over the past year, it​ is​ a​ good idea to​ call and inform the insurance company to​ see if​ you this makes you eligible for a​ discount .​
You may also be able to​ receive a​ discount if​ you started receiving car insurance from the same company, turned a​ certain age, or​ began a​ membership to​ a​ certain club or​ organization that the insurance company recognizes and gives discounts to​ on a​ regular basis.




You Might Also Like:




No comments:

Powered by Blogger.