When you get your renewal notice for your homeowner’s insurance, do you take the time to review what your coverage includes and whether it fits your current needs? Many policyholders don’t. In fact, many file it away without giving it a second glance. But what you may not notice is that throughout the year, your insurance needs could change significantly. Whether it’s because you’re eligible for new discounts, you’ve acquired new items, or you’ve physically updated your home, it’s always worth it to give your insurance policy another look to ensure that you’re adequately covered.
You Could Be Eligible For New Discounts
Do you remember whether you previously qualified for any home insurance discounts? If you don’t, or it’s been a while since you’ve last reviewed all of the discounts on your policy, you should speak with your insurance broker about whether you could qualify for more. Especially if you’ve updated your home within the last year. Performing upgrades such as installing a home security system, switching out old electrical and plumbing systems or even installing a new roof are only a few things that may allow you to qualify for further discounts.
Is Your Home Inventory Up To Date?
As the years go on, it’s a fact that we accumulate more items in our home. While some may not be missed if they’re damaged or stolen, others could have great sentimental or financial value. With this in mind, it can’t be stress enough that you always take the time to review your valuables to ensure that your home insurance will cover them. While reviewing your policy and the items in your home, you may find that you want to change how you’re insuring your property. Depending on what you’ve purchased over the years, you may find that it’s better to insure your property at Replacement Cost rather than Actual Cash Value. As well while doing a home inventory, you may find that special pieces such as art, jewelry or even collector’s items could require you to purchase additional coverage with greater limits. This can help ensure that their full value will be protected if they’re damaged or stolen. But with any high-value items, it’s always recommended that you accurately catalog or document them by keeping receipts as well as photographs so their value and condition is known if needed.
Renovations Can Change How Much Coverage You Need
Since you last updated your homeowner’s insurance, has your home physically changed at all? Did you perform some renovations to increase its value such as installing a swimming pool, addition or maybe a home-based business? Performing any renovations to your home, whether it was updating a kitchen or building an addition, could require you to increase your limits as it will likely cost more to replace or repair damages. As well certain renovations may require you to change your liability coverage because the likelihood of someone being injured on your property will have increased. One example is when families install swimming pools in their backyards and need to increase their liability coverage due to the increased possibility of guests being injured. As well starting a home-based business may require you to not only increase your coverage, but possibly even add home-based business coverage to your existing plan if more people are accessing your property for business purposes.
Whether or not you believe that your home insurance needs have actually changed, it’s always a good idea to speak with your broker. Many find that after discussing the changes that they’ve made to their home, no matter how small they may think it was, could bring them new discounts, coverage needs, or realization that they need to update their home inventory to better document their belongings! When in doubt, contact your Cambridge Insurance broker!