When to Update your Homeowners Insurance Policy

When you own a home, you must have homeowners insurance to cover any accidents or disasters. The premiums are based on the amount of coverage you have, but over the years your coverage limits may need to be adjusted.

When you remodel your home, you may need to increase the policy value if the value of your home increases. It may also be wise to have liability insurance to cover the contractors and subcontractors in case they don’t have worker’s compensation policies and are injured on your property.

It is important to have an inventory of all of the major possessions you own to know how much coverage you should have, and to have records of it in the event of a fire or disaster. Keep this inventory and photos or video of your possessions in either a safe deposit box, or in another location in the event of a fire.

Getting married or divorced can have an affect on many aspects of your life including your homeowners insurance policy. If you are getting married, you may be increasing the value of your personal belongings by combining two households worth of stuff and new wedding gifts. If you take an inventory of all of your belongings and discuss it with your agent, then you will have an idea of how much coverage you will need. However, this single policy may be less expensive than the two seperate policies being paid for before.

If you are getting divorced, it is also important to have an inventory of the items you have after the divorce to see what kind of coverage you need. If the other party received many of the high priced items it may have an effect on the amount of coverage you need. If you end up renting an apartment instead of owning a home, then it is still advisable to have renters insurance to cover your possessions. Many people don’t think they need insurance since the landlord will have insurance on the building, but it will not cover your possessions in the event of a fire or other disaster.

You may not think it would be necessary to update your insurance coverage when buying or adopting a puppy, but it may be necessary. The liability coverage of your policy may need to be increased to cover any additional expenses that may be incurred in the event of dog bites and other injuries.

There are certain times in your life where it may be necessary to update your homeowners insurance policy.