Most people simply accept home insurance as a necessary part of owning a home. In fact, many home owners simply renew their policies each year without putting any thought into their policies.
The reality is that you should take the time each year to read through your policy. This is important to make sure that you have the right amount of coverage and that you are getting your money’s worth.
Review, Then Renew
Depending upon the year, you may have had drastic changes in your household. For example, did you just finish renovating a certain part of your home? Did you get a dog? Did you purchase an expensive piece of art or start a home business? Are you storing a boat on your property? These are all things that may necessitate a change in your policy coverage.
In addition, it could be possible that your insurance agent made a mistake on your policy. These mistakes could be costly if something should happen. For example, if you have upgraded your linoleum kitchen floor to top quality hardwood flooring and the hardwood is damaged after your pipes burst, your insurance company may only reimburse enough to fix a linoleum floor, not the newer hardwood floor.
Consider how much coverage you have. Then, ask yourself what would happen if you would need to replace all of your possessions due to a major catastrophe. Would your insurance cover that amount? If not, you may need to increase your coverage.
Coverage For More Than Catastrophes
Your home insurance policy also provides liability coverage as well. Suppose your dog nips a guest in your home and the guest needs medical attention? Your homeowner’s policy would cover expenses. This is also true if you have a home business and you meet with clients in your home. Should you ever be sued due to injuries a client sustained while on your property, having a homeowner’s insurance policy can be a big asset.
Getting a Good Insurance Rate
Often at renewal time, homeowners wonder if they can save some money on their policies. Because the cost of insurance can vary significantly from company to company, it is a wise idea to compare rates every so often. When comparing rates, make sure that the quotes are for the same amount of coverage!
There are some ways to save money on your policy without switching companies. You can combine your auto insurance and home insurance policy in order to receive a discount on the cost of your policies. You can also increase the deductibles on your policies. However, caution is in order. Although you may save money on your policy, you should also make sure you can pay the deductible.
If You Decide To Switch Companies
Research companies several months in advance of your renewal date. Then, simply start your policy with your new company and do not renew your old policy. Of course, you will need to call the new company several weeks in advance in order to make sure that your new policy begins when your old policy expires. Any lapses in coverage could be very costly financially.
Although you make not have the time to check your coverage on a regular basis, taking the time once a year can actually help you save money and get better coverage in the long run.