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Four Reasons You May Need To Update Your Home Insurance Policy

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Although every homeowner should review their policy prior to renewing it, there are certain events that may trigger the necessity of updating your policy during its coverage period. In some cases, this may mean a drop in premiums while at other times it may mean additional coverage. The following are only four situations when you need to take out your policy and review it.

You may now qualify for discounts

It is possible that you may qualify for a discount today that you did not qualify for in the past. Certain alterations to your home can trigger discounts. One example is with certain alarm systems. You should always check with your agent for any discounts that relate to security. Even the addition of floodlights to the exterior of your home may mean a discount. Another example is a non-smoker discount. If you were a smoker and have quit, you may be entitled to a discount. There are usually minimum time requirements since you last smoked. Two years is an example.

You no longer have children living with you

This can result in a decrease in the amount of liability protection you need. When your children were younger, they likely had friends over. The number of children in your home at any given time will increase the chances of an accident occurring. However, once your children are grown and move out, the amount of liability coverage you require may be lower. This is especially true if it is only you and your spouse living in your home.

You have less personal property inside your home

When people get older, they often simplify their lives with fewer material possessions. If you have a policy that covers personal property inside your home, you may need to take inventory and compare it with what is insured. If you have had your policy for several years, you may discover that you are over insured for personal property protection. Also, if you have adult children who have moved out, they likely took some valuable personal property with them that no longer needs coverage.

Minor renovations to your home

Obviously, anything major such as a roof addition or a swimming pool will necessitate an update in your policy, but smaller renovations are often overlooked. A new roof, but one that has a different and more expensive material, is one example. Enclosing your patio or deck area is another example. New structures such as a gazebo, storage shed or small greenhouse may necessitate an updated policy.

Always remember that insurance policies are drawn up to cover your situation at the time the insurance was purchased. Changes in your life can mean that you are over-insured or under-insured. Reviewing your policy and contacting your insurance agent will help you determine if any changes need to be made. For more information, companies like the Kerr Agency may be able to help meet your needs.