Being a homeowner comes with great responsibility. You are responsible for the property itself, your family who lives in the house, and your personal belongings. That is why having a comprehensive homeowners insurance policy is essential. It gives you the protection needed in case you face a loss and financial difficulties.
As life is full of unexpected circumstances, be sure to update your policy accordingly to protect your property from weather, non-weather, and accidental incidents. If you are wondering when to update your homeowners insurance, read about some of the changes that will affect your policy below. These life events may impact any future claims, so pay attention to the terms and conditions.
Buying a new home
If you currently own a home and are buying a new one, unfortunately, you can't just transfer the policy. Your new home will likely have different risks and needs, which means you need different coverage.
If you’re setting out to buy your first home, know that homeowners insurance will protect your property, people, and the belongings inside from incidents that include, but are not limited to:
Storms, wind, lightning
Fire
Freezing, weight of ice and snow
Theft, vandalism
Riots
Aircraft and vehicles
Water from plumbing
Heating and cooling system tearing
Usually, this type of insurance is renewed once a year or when you have new coverage needs. The cost will depend on many things, but know that prices vary based on many factors such as square footage and additional structures such as an “accessory dwelling unit” (ADU), or the materials used to build the home. Therefore, it is best to consult with your agent, who has the expertise and the know-how to answer all of your questions and ensure you have proper coverage.
Your family is growing
If you are expecting a new member of the family, you should be thinking of updating your homeowners policy. You might wonder what the relation between your new baby and insurance coverage on your house is. One aspect of homeowners insurance is content coverage, and with a new baby comes a lot of new “stuff” – furniture, electronics, strollers, etc. You want to be sure these purchases don’t put you over your current coverage limits. Contact your insurance agent to discuss your current policy and if it needs to be updated. It’s also helpful to keep a running home inventory in the instance of a loss; this will make the claims process much easier.
Your family may also be growing with the addition of a four-legged member. Let your insurance agent know about this immediately, as potential claims such as a dog bite will not be covered if the dog is not listed.
Working on a home improvement project
You might decide to update your bathroom or remodel your kitchen. When you finish your home improvement project, be sure to let your insurance agent know. These additions and improvements to your property will affect your insurance policy. In the case of making a claim, you will need additional coverage for the upgrade costs.
If your kitchen remodel or the bathroom upgrade is making your home inadequate for living, you may think about staying with friends or relatives. During construction, you can even relocate to an apartment if your budget allows you to. In this case, you would also want to protect your property during relocation, especially if you own items of value. That way, you will have complete coverage and, most importantly, peace of mind.
You are going to retire soon
If you plan to retire and will likely be spending more time at home, you may be eligible for insurance discounts. There will be a reduced chance of theft since you are home, and accidental incidents like a fire will be less likely to occur.
If you have plans to travel now that you are retired, you should also check if it will impact your homeowners insurance. Suppose you travel for extended periods, the house will be empty, so you might need extra coverage. Even if you don't leave your home vacant but rather rent it to someone, you should talk policy updates with your agent.
Check if there is something your policy does not cover
Even with the adjustments and updates to your homeowners policy, it will not cover certain liabilities. Standard homeowners insurance does not cover flooding. You can purchase insurance covering flooding from heavy rain, snow, or hurricanes as a supplement to your homeowners insurance. As flooding is one of the most common natural disasters, it's advisable to consider purchasing this type of insurance as well. If you live in an area where the chances of heavy rain or snow floods are more significant than average, don't hesitate to talk this over with your independent insurance agent. Your agent will simplify the complexity of this insurance and any additional policies you might want or need. No one knows what the future brings, but one thing is for sure, you want your property and your family to be secure and your financial prospects intact.
Questions about homeowners insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.