Once most of us buy homeowners insurance, we usually forget what’s covered. Our lender makes us purchase coverage in order to get the loan and it’s easy to lose track of why it’s such an important document.
Reviewing our homeowners document is important to do periodically. It allows us to think about whether recent lifestyle changes require adjustments.
Beyond discounts, failing to review the paperwork and coverage might leave us open to inadequate financial protection in the event of theft, fire or any other type of disaster. Let’s take a look at the kind of life events that might make it time to review our Webb Insurance Group homeowners insurance policy.
Home Remodeling Project
It’s a good idea to call out the insurance agent whenever we take on a home improvement project. The following projects might add value to the home:
- Adding a master bedroom bathroom or suite
- Updating an old 1960’s kitchen
- Adding a fourth bedroom
- Building a new front porch
- Adding a new roof
Increasing a home’s value means the insurance benefits should be adjusted. It will most likely cost more to rebuild the house in the event that disaster strikes. It’s important to get any additional coverage now so that we aren’t met with unfortunate surprises at the time of a rebuild.
Before we begin any home improvement project, it’s a good idea to take time out to snap a few before and after pictures. We might need to put furniture or other items in storage. We’ll want to make sure that those items are covered by our policy even if they are stored outside our home.
Our liability insurance must get checked, as well. Our coverage might need an increase during the renovation project. This will protect us in the event that anyone gets injured while supplies are laying around the yard or home. We’ll also want to make sure any hired contractors have insurance.
Recent Purchases of Big Ticket Items
Insurance will cover lost valuables in the event of theft. These items must be listed on the coverage rider, however, in order to get paid for when a thief pays a visit. There’s nothing worse than losing jewelry, artwork, furs or electronics through burglary and then finding that the insurance money isn’t going to pay for replacement.
Make a mental note to call the agent whenever a valuable item is purchased or received as a gift. Add it to the coverage listing immediately.
To make sure we don’t forget what items are relevant, here are purchase examples to add into your insurance policy:
- 72-inch flat screen television
- Computer or laptop
- Gym equipment
- New sofa
- Other home furnishings
Installing a New Alarm System
An alarm system helps decrease the chances of theft. It also means a discount on monthly home insurance payments. We need to remember to call the agent as we add in a new alarm system to find out how much savings will result.
On average, we should see a nice 10 percent break on premiums after installing the alarm system.
Installing a Front Door Camera System
We might decide that a full home alarm system isn’t possible at this time. One small step we can take to improve security is to install a front door camera.
This allows us to see who comes to the door and decide whether we want to open the door to them. If it looks like burglars have paid a visit, we can talk to them and let them know they are being recorded.
It also helps get a reduction on our homeowners insurance. It’s wise to make a call to our Webb Insurance Group agent to find out how much savings we will benefit from.
A New Family Swimming Pool
In the case of installing a new swimming pool, we’ll most likely see a rise in insurance premiums. Fight the urge to hide the pool from the insurance company. If someone gets injured or drowns in the pool and the insurance company didn’t know about the pool, all liability falls on the shoulders of the homeowner.
Adding the pool into the insurance coverage is vital. The peace of mind and protection in the event of a catastrophic pool accident is well worth the monthly premium increase.
Buying a New Dog
This is another area where our premiums will go up a little. Just like pool protection, however, it’s important to let the insurance agent know about the new dog. In the event that our new pooch decides to bite someone on the property, we want to make sure we have insurance protection.
Adding Fun Outdoor Entertainment
We’ve already discussed the need for more insurance when adding a pool. Other outdoor fun might create the need to call the insurance agent. This might include building a treehouse in the backyard or assembling a trampoline.
We want to protect ourselves against anyone injuring themselves jumping on the trampoline or climbing around in the treehouse.
Renting Out The Home
With vacation exchanges becoming popular, we might add extra income to the monthly budget by renting out the home.
This requires a call to the insurance agent because renters may not be covered under the insurance benefits. If this is the case, this needs to get adjusted. We don’t want any liability in the case of a renter getting hurt.
Starting a Home Business
Call the agent when starting any type of home business. The agent will know the best way to handle it, but the coverage might come in the form of designated business insurance or possibly a simple rider.
It’s always a good idea to revisit the terms of our homeowners policies when any of the above life events happen. Since this is an easy task to put off, make it a habit to call the agent immediately.