I've been recently asked by my clients about home insurance and when they should update it, so I thought it might be a good idea to share some of my thoughts on this topic. What I always say is that it's smart to contact your insurance agent any time you make any update to your home or there are lifestyle changes.
Remember, the purpose of a homeowners insurance policy is to be sure you are covered for a catastrophic event that will effect your personal belongings, the structure of your home, the cost of living in temporary housing while repairs are made and to protect you from liability from others.
Here are some triggers for existing homeowners who wonder if it's time to update their policy:
Did you renovate your kitchen or finish the basement? Any major improvements?
Have you added a dog to the family mix?
Have you started a home-based business?
Did you purchase additional valuables, a new flat screen TV or an expensive piece of jewelry?
Have you rented out your home?
Has your home value increased since you last checked in with your insurance agent?
Things like these might exceed your current insurance, and if the worst happened to your home you might not be fully covered. That's why I personally keep a close relationship with my insurance agent, so I can do a quick check to make sure I'm always protected. It's also a good idea to get a bundle discount by combining car insurance and always get new quotes each year to be sure you're getting the best rates and coverage.
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