4 Reasons to Update Your Homeowner’s Insurance Policy
Monday, April 20, 2020, 6:00 AM | Leave Comment
Even if you feel like you have solid home insurance, you will need to occasionally reevaluate that policy.
Regularly updating your policy is going to give you peace of mind knowing that your home and all of your belongings are fully covered if a catastrophe occurs.
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Moving to a New Home
If you plan on moving to a new home in the near future, then you should take a look at some different homeowners insurance policies. This type of insurance is personalized for each home, and there isn’t a blanket policy that is going to cover every type of residence. When you are searching for a new policy, you must take many different factors into consideration ranging from the value of property to how large of a loan you are taking out.
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Major Financial Changes
Another time that you might want to take a fresh look at your insurance is whenever a major financial change occurs. When you are laid off or given a raise, you could make some changes to the policy to increase your coverage or save yourself some money. Some homeowners prefer to increase their deductibles when they are making more money so that they can lower their monthly payments.
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Renovations and Upgrades
As a general rule, you should immediately update your homeowner’s insurance policy whenever you carry out any renovations or upgrades. Your home insurance is highly customized and probably won’t cover any upgrades unless you specifically add them to your policy. That includes renovations such as turning a basement into a home theater or adding an outdoor living space to your yard. If the upgrade altered the value of your home, then the insurance policy needs to be altered.
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Renting a Room
Many people are now renting out single bedrooms in their homes or attached living spaces. While that type of arrangement can be very lucrative, it will impact your insurance needs. Well before you have any tenants move into your home or another building on your property, you must speak with an insurance specialist. You might need to add some riders to your current policy or switch over to a landlord’s policy.
Your insurance is going to be your first line of defense against a wide variety of mishaps, and you must make sure that you have adequate coverage at all times. Without a solid insurance policy, you could end up facing huge expenses in the coming years.
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Meghan Belnap is a freelance writer who enjoys spending time with her family. She also enjoys being in the outdoors and exploring new opportunities whenever they arise. Meghan also enjoys researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook and Twitter.
