5 Things You Don’t Know About Your Homeowner’s Insurance

If you own a home, chances are you own insurance on it. Most of the time when we buy insurance we sit down with our agent and go over what the current state of the home is and what level of insurance fits where we are in life. The problem with staying stagnant with one insurance policy for too long a period of time is that our lives generally change dramatically and often. As a result, you may have an insurance policy that is out of date and in need of a renewal. Here are a few reasons you may need to take another look at your insurance policy.

1. Your home isn’t necessarily the newest place on the block. – Older homes have issues that newer homes may not have. A sewer backup is a prime example of a problem that an older house may encounter that may not be listed on general umbrella insurance policies.

2. You’ve added safety devices to your home. – Insurance companies often have some sort of credit program on policies if the homeowner install smoke alarms, gas alarms, security systems, sprinklers etc. It’s a great idea to mention this added protection with your agent.

3. You run a business from home. – Just because your business is in your home, doesn’t mean the business is protected. Oftentimes a special rider has to be added to a home insurance policy to cover the business within it.

4. Like it or not, the cost to rebuild is going up. – Even though home costs are lower these days, the cost to have one rebuilt is always growing. Year after year, the cost to have a home rebuilt following a fire or similar tragedy is going to rise. Make sure your policy reflects the current price of rebuilding costs.

5. You’ve purchased some new valuables or you’ve simply acquired more stuff over the years. – Making a large purchase on jewelry or electronics can dramatically increase the valuables of the contents of your home. On the same token, as life goes on, it’s safe to say that items within the home are going to be slowly but surely acquired. Either way, there is likely going to be a point where you should go over your homeowner’s policy and make sure that it reflects the value of the items within the home.

It’s always good practice to review your insurance policy at least once a year, even if you feel nothing within your home has changed. You just might surprise yourself with what isn’t covered.

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