Homes aren’t cheap. In fact, a recent survey showed that U.S. home-ownership rates fell in the first quarter of 2016 to 63.4 percent, the lowest it’s been in the last 48 years.
A house is a big investment, and it can be devastating if it were to be destroyed. This is why homeowners insurance is so important. If you already have a homeowner’s insurance policy, that’s good news. However, this doesn’t give you the license to just sit back and relax. If you don’t have homeowner’s insurance then you need to get one. You might want to get homeowner insurance like this to make sure that if something does go wrong then you are covered.
Why you should review your homeowner’s policy
- The cost of rebuilding homes is rising
Life is great when you know all your bases are covered and you have nothing to worry about. Then when a fire breaks out in your home, your insurance provider tells you that your policy won’t cover the restoration of your home. This can send your world spiraling.
The market value of your home isn’t the same as it was when you first bought it. This includes the value of the land as well as its replacement value. The cost of rebuilding is also going up as builders have to comply with new home regulations.
On a side-note, keep in mind that you should ensure if you use a builder, that they have builders public liability insurance – just in case anything goes wrong!
It is important to have a policy that can cover the cost of rebuilding. If you’re not sure if your policy will cover you, it may be time for a thorough review.
2. You’ve enhanced your home’s safety
Have you taken measures to secure your home? Insurance providers appreciate efforts such as installing sprinklers, alarms and other safety devices. Doing so reduces the chances of accidents or other incidents in your home and could make you eligible for a discount as a result of the measures you’ve put in place.
3. You’ve had some home improvements
Even simple remodeling projects can increase the value of your home. If you’ve remodeled your home recently, its value could have increased. You should discuss the renovations you’ve made with your insurance agent and determine whether you need to make some changes to your policy. Don’t forget, that if you are planning on updating your house sometime soon (perhaps you’ve seen something you like on a site like this twin cities mom blog), then you should still talk to your insurance agent in case there is something that needs to changed or added.
4. You want to save money
Combining carriers can help you save money on insurance policies, therefore it’s in your best interest to take your auto policy, even life policy if you have one and group everything under one insurer. Use insurance comparison tools to see the best homeowners insurance rates available to you after bundling.
5. You’re now working from home
Many people are starting businesses and running them from their homes. If you’re an entrepreneur, you should reevaluate your homeowner’s insurance policy and add a policy to cover your business. Your business will otherwise not be covered under your regular homeowner’s policy.
6. You’ve accumulated more
Have you upgraded your TV or stereo system? Do you have a new couch? If you’ve purchased new items, it means the total value of your belongings has increased. Since homeowners insurance covers personal possessions, it is important to update it when you’ve bought more stuff.
7. You need cover for liabilities
Homeowners insurance is for much more than only protecting the content and structure of your home. It also protects you in case of liabilities. If you’re sued for bodily injury or damage to property caused by your pets or family members to other people, your homeowner’s insurance will cover you.
8. You live in an old home
A standard policy doesn’t cover many issues that old homes experience, such as a sewer or drain damage or backup. You may need add-ons to have adequate insurance. Talk to your insurance agent to find out what add-ons you can invest in to reach your peace of mind.
If you have a homeowner’s insurance policy, be sure to keep it up to date. Talk to your insurance provider regularly and update them on your current situation. It is also worth looking around at how insurance adjusters, like the Global Claim Advisors, may be able to help you in the future if you need to claim against your provider. Most insurance adjusters aim to ensure you are treated fairly by your provider and are not mistreated.
I appreciate the advice about updating the insurance policy if you’re working from home. My brother is moving his solar startup to work from home so he needs a better policy. He should find one that gives discounts for small businesses.