Most people don’t give much thought to home insurance. They just pay the premium every year, accepting it as part of owning a home. However, if you can give a little more attention when the homeowner’s insurance is due for renewal, you will be able to get a better value for your money and proper coverage.
Review at the Time of Every Renewal
In some years, you may not bring about any changes to your home. However, in some years, you may take up major renovations. This can make a big difference to your home insurance policy. If the insurer is not informed of these changes, the upgrades may not be covered.
You need to modify your policy if you change the flooring, build new decks, upgrade your bathroom and kitchen or make any other addition to your home. The insurance policy for your home is based on its reconstruction cost which is worked out on the basis of the information that you provide. If the cost has been worked out for carpeting as flooring, the hardwood flooring that you changed over to will not be covered. Renewal is the best time to incorporate the required changes so that your homeowner’s insurance provides adequate coverage.
The Coverage You May Not Think Of
Your home insurance does more than just covering you in the event of a catastrophe. It covers your personal property and provides coverage to protect you whether you are at home or away. Ensuring that you have the best coverage can make a lot of difference if you have to face a claim.
Most people go with the basic liability coverage, but increasing the coverage does not cost much and makes a big difference if you are faced with a lawsuit. When renewing your homeowner’s policy, review your liability coverage and make sure it is adequate for you.
The same rule applies for personal property coverage as well. Insurance companies automatically include a percentage of the coverage provided for the house towards personal property. You need to decide whether that will be sufficient for replacing the things that you own.
Find a Better Rate
It is during the renewal time that you always think about ways to save some money on your homeowner’s insurance. The cost of homeowner’s insurance can vary widely from one place to another and you should shop around to get a better rate.
If you have your home and auto insurances with different companies, the best time to bring them to the same company would be the renewal time. Insurance companies offer multi-policy discount and you may end up saving some money. Making some changes to the deductibles on home insurance can also contribute to changes in rates.
Change Your Insurance Company at the Time of Renewal
The best time to change your insurance company, if you want to, is at the time of renewing your policy. You can avoid paying penalties and ensure a smooth transition. However, you must do sufficient research as regards the companies and the rates offered prior to changing over to the new insurance company.
It is a good idea to develop a habit of reviewing the requirements of your homeowner’s policy every year during the renewal time. It can help you to enjoy some savings not only on premium payments and claims, but also in terms of getting the most for your money.