When You Should Review Your Homeowners Insurance Policy – Part 1

February 1, 2011 | Author Cindy

Homeownersinsurance policies are documents that need to be reviewed annually and updatedperiodically. There are a variety of reasons for this review, and the only wayto ensure you have proper coverage is to speak with your insurance agent.

Ifyour agent doesn’t call you, take it upon yourself to ensure that you haveproper coverage. (If your agent does not contact you at least once every twoyears, you might want to consider getting quotes from one who does.) Unlessyour agent is a friend, it is highly unlikely he/she will know that you have aneed for increased coverage.

Thereare a few reasons to have reviews of your insurance policy. First, you’rerisking not having complete coverage if you have made any major changes thataffect the value of the house. If you have a disaster, and find you’reunder-insured, that is not the time to disagree about who was responsible forproper coverage. The responsibility always falls on the policyholder.

So,what are the exterior and structure changes you should report to your insurance agent?

Thesquare footage of your home is what determines the coverage needed, so if youhave added on to your house, it is imperative to let your agent know.Additionally, if you converted an attic to living space or finished a basement,these are other times to inform your agent of the need for additional coverage.For example, let’s look at a ranch-style home of 1800 square feet, with a fullbasement. Once the basement is completely finished into living area, you havejust doubled the size of your house to 3600 square feet! Obviously, additionalcoverage will be necessary.

Checkwith your agent to determine if you need any changes to your policy to cover anynew out buildings added to your property. These could include a pole barn, minibarn, pool house or garage.

Otherexterior changes that should be discussed with your insurance agent are fences,in-ground or above-ground swimming pools.

Remodelingdoes not usually require additional coverage, such as new appliances, newcarpet, etc. However, if you do extensive redesign, it’s best to verify you’recovered sufficiently.

Besidesthe possible need to increase your coverage, there are also updates that mighthelp you qualify for credits, thus reducing your premium amount. These items,among others, are a new roof, furnace, electrical and plumbing.

A sprinkler system, smoke alarms or security alarms alsomight qualify you for a discount.

If in doubtabout the need for additional coverage or possibly qualifying for credits ordiscounts, give your agent a call.

Posted in insurance | Tags: homeowners insurance, homeowners policy, insurance agent, insurance policy

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February 14, 2011 at 7:25 pm

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