When you first take out a home insurance policy, it's usually in the midst of the stress of buying a home. Among all the chaos, you choose a policy that satisfies the requirements of your lender, and then forget about it entirely. This situation may not describe every homeowner, but it might make you realize that it's time to upgrade your policy.
Here's how to consider when the time has come to do this and how you can best go about it.
You Bought More Things
Personal property may or may not have enough coverage under your policy, depending on how it's structured. When you first moved into the home, your bare minimum coverage option may have made sense. But as you accumulate everything from jewelry to electronics, you may need to either take out additional coverage or increase the limits on your policy. You'll need to extend your personal property coverage as your value of possessions increases.
You Made Major Life Changes
Have you taken up a new (potentially dangerous) hobby? Did you adopt an abused pit bull from a shelter near you? Are you having a new baby? These major life changes can potentially affect your policy, especially if your home insurance carrier is unaware of them. Contacting your carrier can be a great way to determine when to upgrade and how much extra coverage you may need.
You've Upgraded The Home
Upgrading the home can involve anything from installing new bathroom fixtures to redoing the entire kitchen. As with buying more possessions, if you're increasing the value of the home, it can push your policy from one bracket to another. So, if you want your new flooring replaced due to storm damage, you'll need to keep your carrier up to date. The value of the changes might change the value of the home.
You Want A Better Carrier
If you're nervous or uncomfortable about the insurer you've chosen, upgrading your insurance coverage could be as simple as changing to a different service. You'll always want to feel content by knowing that you're with a company on which you can rely.
There's no need to change your home insurance for every little thing you do around the home, but there may be more opportunities to upgrade than you realized. A good rule of thumb is to ask yourself how things are different between now and when you first took out the policy. Is there a lot more value in your home as a result? This can give you a better idea of when to make the call.
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