Why Now Is the Perfect Time to Review Your Homeowners Insurance Coverage  

As a homeowner, having the right insurance policy gives you peace of mind, but how do you know when it’s time to review your home insurance coverage? As our lives evolve, so do our homes.  

Maybe you’ve completed a major renovation, added a dream kitchen, or upgraded your basement. If your insurance policy hasn’t kept up with these changes, you could be underinsured in the event of a disaster. Now is the perfect time to review your homeowners insurance coverage to ensure it fully protects your home. 

Why Do I Need to Review My Homeowners Insurance Policy? 

Regularly reviewing your homeowners insurance policy is essential to ensure it aligns with your current circumstances and adequately protects your home and belongings. As life changes, so can your insurance needs. A periodic review can save you from potential gaps in coverage or unnecessary expenses. 

Most experts recommend taking the time to review your homeowners insurance policy annually or whenever significant changes occur in your life—such as home renovations, purchasing valuable items, or changes in your household. Regular reviews help you stay ahead of any adjustments that may be required to maintain adequate coverage. 

Understanding Your Current Home Insurance Plan 

Before diving into a policy review, it’s crucial to have a clear understanding of your existing home insurance plan. Here are three tips to help you break it down: 

1. Know Your Policy Limits

Take note of the coverage limits for your dwelling, personal property, and liability. These limits determine the maximum amount your insurer will pay if you file a claim.

2. Understand the Exclusions

Carefully read the exclusions section of your policy. This will help you understand what events or items are not covered, such as certain natural disasters or specific valuables.

3. Review Your Deductibles

Be sure to check your deductibles—the amount you’re required to pay out of pocket before your insurance kicks in.

Understanding the specifics of your policy can help you identify any areas where your coverage may be lacking or excessive. It also provides a foundation for making informed decisions during your review process, ensuring your insurance policy meets your current needs effectively. 

How Life Changes Affect Your Policy Needs 

Life is full of changes, and many of these can impact your home insurance needs. For example, if you’ve recently renovated your home, its increased value may require higher coverage limits. Similarly, acquiring valuable items like jewelry or artwork might necessitate additional endorsements to your policy. 

Other life changes—such as children moving out, a change in marital status, or even starting a home-based business—can also affect your coverage requirements. Being proactive about reviewing your policy in light of these changes ensures you remain adequately protected. 

The Benefits of Choosing to Review Your Homeowners Insurance Coverage  

Conducting a thorough policy review involves several key steps. Start by contacting your insurance agency to set up a time to connect. Together you can find the best way to gather all relevant documents, including your current insurance policy, recent appraisals, and any receipts for high-value items.  

This documentation will help you assess whether your current coverage is sufficient. Next, take the time to: 

• Assess New Coverage Needs: If you’ve made upgrades to your home, or added personal property, your coverage might need an update. It’s important to ensure your dwelling protection reflects the cost of rebuilding your home, not just its current market value. 

• Look for Savings: During your review, ask about any savings that you may qualify for, such as bundling home and auto insurance or installing home security systems. 

• Explore Coverage Options: It might be worth exploring additional endorsements or riders, such as flood insurance or personal liability protection, to address specific risks that may not be covered under a standard policy. 

Contact Your Agent to Review Your Homeowners Insurance Coverage 

Taking these steps to review your homeowners insurance coverage will give you peace of mind knowing that your home is protected, no matter what life throws your way. An experienced independent insurance agency can offer insights into potential coverage gaps and suggest appropriate adjustments. Contact our team to learn more about how reviewing your policy can benefit you today.