For most homeowners, insurance is a requirement. Almost every lender will require it in order to protect their interest. It is also highly recommended to have a homeowners policy for those buying in cash or for those who have paid off their mortgage. With a home being such a large asset, insurance can protect its value. However, there are certain times when updating your policy is required. If you don't, your home will have coverage gaps and any potential claim might lead to less money received or less protected liability. Let's take a look at 9 times when homeowners insurance should be updated.
1. You Remodeled Your Home
No house is perfect (unless you custom-built one from scratch!), and you will always have ideas of how to remodel it. Whether it's updating the kitchen or a bathroom, finishing the basement, or adding an in-law suite, there is plenty that can be done to improve a home. And while remodeling is typically done to meet your own needs, it could also increase the value of your home. It's important to update your homeowners policy after remodeling to ensure your asset is covered for its full value. Your policy might cover your home, pre-remodeling, at $250,000. However, the remodeling might increase your value to $275,000 and now you have a gap of $25,000 in coverage which could be lost if something happened to your home.
2. You Bought Expensive Things
Homeowners insurance covers more than just your home. It also protects the property within your house, such as the refrigerator or sofa. Just like with additions to the home, if new possessions have increased the value of items in the house, you will need to update your policy. Common items which can provide a sizable bump in value include jewelry, art, computer, furniture, appliances, and high-end apparel. Let us help you extend coverage to include all of your valuable purchases!
3. You Got A Pool!
After reading the last two points, you might conclude that it's necessary to update your homeowners insurance with the addition of a pool. While it is possible that a pool could increase the value of your home, the major concern is actually about liability. If you have a pool, you are responsible for any injury. In fact, you are even liable if someone uses your pool without your permission and gets injured! Updating your policy will protect you from possible claims resulting from lawsuits. If you don’t update, you will have to pay for any damages out-of-pocket, unfortunately.
4. You Got A Dog
Just like with a pool, owning a dog can be a liability. While not all dogs bite, in the eyes of an insurance company, that risk is always present. Your homeowners policy can protect you from any damages caused by your dog. If you get a dog, we can help you update your policy accordingly.
5. You Quit Smoking
Smoking increases premiums, whether it’s for life insurance, health insurance, or even homeowners insurance. For both life and health insurance, it's a no-brainer that smoking can cause serious issues and lead to death. When it comes to homes, smokers are more likely to have a fire claim (those buds will get you!). This has led to higher premiums for smokers. If you quit smoking, you can potentially get a better, reduced rate on your premiums!
6. You Replaced A Roof
Roofs are a common claim for homeowners, between hail, wind damage, and water leaks. New roofs have better longevity and are better suited to protect your home from hail, wind, and rain. As such, your insurance company is normally happy to provide discounts for you to proactively protect your home with a new roof. Once a new roof is installed, it's imperative to speak with us for getting a reduced premium.
7. You Added An Alarm
Similar to a new roof, a new alarm system can provide a discount on your premium. An alarm system is likely to reduce theft, which means less risk for the insurance company of a possible claim. In a real sense, the alarm system will pay for itself in better insurance rates. You might even save more money than the system costs! So if you have installed an alarm, reach out to us and see if we can get you lower premiums.
8. You Retired
Nothing beats retirement! You can relax, learn a new hobby, or do anything else you desire. While the door is wide open to travel, most people who are retired spend a lot of time at home. As such, they are able to monitor their house better and would be more likely to notice any issues before they become serious. This makes retirees less risky and able to accrue a lower rate on a homeowners policy. If you have recently retired, give us a call to see what types of savings we can unlock.
9. You Have Had The Same Policy for 2+ Years
Life moves pretty quickly, and we tend to juggle a variety of priorities. Insurance is often one of the last things on our minds. It's not necessarily the most glamorous thing (even we don't think so!), but periodically checking on rates can save you money and put more cash in your pocket. If it's been a while since you got a quote, please contact us.
Your Local Insurance Agency in Kearney, MO
It has been a pleasure to work with our community and help so many people save money on their homeowners insurance. That extra money can be put to good use on bills, debt, or savings. If any of the scenarios above apply to you, we are here to provide fast and simple quotes. You can use our contact page, send us an email, or give us a call directly.