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Why It’s Important To Review Your Home Insurance Policysiadmin January 4, 2019
Do you know how often you should review your home insurance policy? The answer: every year.
Insurance policies are meant to reflect your current circumstances. Things change throughout the year, and your home insurance policy needs to be kept up to date. For example, did you move into a new home? Did you receive expensive jewelry for your anniversary? Perhaps you started a home business.
If you haven’t reviewed your home insurance in some time, now is a great time to do so. If you find that you need more or less coverage or the addition of an umbrella policy, you can shop around and compare quotes with various carriers.
Here are the main reasons why it’s important to do a yearly review.
Changes in Your Circumstances
A lot happens in a year. As you look back and reflect on the last 12 months, you can see how quickly your current homeowners policy may turn irrelevant. Failing to update your policy could result in a non renewal or a claim not being covered.
For example, let’s say that you renovated your kitchen. This type of renovation adds value to a home, but if you don’t increase your insurance coverage, you could have a gap in coverage. If a fire broke out in your new kitchen, it likely wouldn’t be covered.
Additional changes that can affect your homeowners insurance are:
-Increase in personal property
-Installing a swimming pool
-Buying a backyard trampoline
-Installing a home security system (or other safety upgrades)
-Adopting a new pet
Find Additional Discounts
People are sometimes hesitant to review their insurance policies because they don’t want their rates to go up. But, reviewing your policy can cause your rates to go down. If you made updates to your home, such as by installing security cameras, or purchasing a hail-proof roof, you may be eligible for discounts.
Plus, your insurance agent can look to see if there are other discounts that you aren’t taking advantage of. Combining your policies through one carrier gives you the biggest discounts, but these discounts vary among insurance companies.
Understand Premium Increases
If your home insurance premium went up, wouldn’t you want to know why? Insurance rates increase for many reasons, and some of them aren’t legit. Many people pay their homeowners premiums through their escrow accounts, so they aren’t aware when there’s an increase. Stay on top of your insurance premiums and know what you are being charged for and why.
Are you ready to review your home insurance policy in the New Year? Contact Soden Agency at 732-521-0001 for your free review and quote.