Your homeowners insurance policy can pay to rebuild your house if it gets severely damaged or destroyed by an event like a fire. Your insurer can also pay to replace personal belongings that are damaged, destroyed or stolen.
Your circumstances can change over time. The insurance coverage that made sense when you bought your house might no longer be the right fit. An annual review of your homeowners insurance policy can be an opportunity to find and address any issues so you can be confident that you have the coverage you need.
You Might Need Additional Coverage
The dwelling limit in your homeowners insurance policy is the amount the insurer will pay if your house has to be rebuilt. If you finished the basement, built an addition, remodeled a bathroom or installed new kitchen appliances, it will cost more to rebuild your house if it gets destroyed.
Don’t just focus on changes you’ve made indoors. Exterior projects can also affect your homeowners insurance needs. If you added a deck or patio, bought or built a shed or installed a pool, you might need additional coverage.
Even if you haven’t made any home improvements, you still might have to modify your insurance policy. Your current coverage might be inadequate due to inflation and rising costs for construction materials.
Homeowners insurance will pay to replace belongings, such as furniture and clothing, that are damaged or destroyed by a covered peril. You might have to modify your policy to cover items that you’ve acquired in the past year.
A standard homeowners insurance policy provides limited coverage for jewelry, artwork and other valuables. If you bought or were given something valuable, you might need to add an endorsement to your policy so that item will be fully covered.
You Might Be Paying for Coverage You No Longer Need
Your coverage needs can also decrease. When you review your policy, you might realize that you’re paying for more coverage than necessary. If, for example, an adult child moved out or you decluttered and got rid of a lot of things you didn’t use, you might be able to reduce your coverage and lower your premiums.
Make Sure Your Homeowners Insurance Works for Your Family
Homeowners insurance can protect you and your loved ones from a devastating financial setback, but it must keep pace with your changing needs. Reviewing your policy once a year can help you be sure that your coverage is up to date. If you have questions or need advice, consult your insurance company or agent.
