The article concerns the following question – Why review your current Home Insurance Policy? A home insurance policy can be quite complicated which is a big part of why it needs to be reviewed from time to time.
Over the years things change and our insurance needs to change as well. That homeowner’s policy you took out ten years ago is probably not providing you with the right kind of coverage. Checking your policy every now and again will not only help to make sure that you have enough coverage it can also usually help you to save money. Changing life circumstances mean that you insurance needs have also changed so make sure that you review your policy.
The most important reason that you are going to want to review your current home insurance policy is to make sure that you have enough coverage. Over the years the value of your home is likely to increase significantly. It is important that your insurance coverage keep pace.
It would be unfortunate if you something happened to your home only to find that the amount of insurance you had is far below the replacement value of your house. It is also important to review your home insurance policy to make sure that everything that you need to have covered is actually covered. What is and isn’t covered can vary dramatically from one policy to another.
Most policies will allow you to add things like garages and their contents to your policy. Over the years we tend to acquire a lot of stuff and there is a good chance that a lot of it isn’t actually covered by your current home insurance policy. It is a good idea to check from time to time to make sure that you have everything covered. You are also going to want to make sure that you have enough liability insurance.
As the value of your home increases over the years so does your net worth. That means that the amount of liability insurance that you need is going to increase. If somebody gets hurt on your property you are going to get sued, this is not the time to discover that you don’t have enough liability coverage in your home insurance policy. It is also a good idea to take a look at your deductible when you review your home insurance policy. The higher your deductible the lower your premiums will be.
Even a small increase in deductible will save you a surprising amount of money. Obviously there is a limit to how high you are willing to go with your deductible but the fact is most people could benefit from having it raised. You don’t want to raise is so high that it makes you uncomfortable but you should probably raise to the highest level that you can without making yourself too nervous. Insurance is really only supposed to be used for major damage, the small stuff should be paid for out of your own pocket so set your deductible accordingly.