Has the Time Come to Make Some Changes to the Home Owners Insurance Policy?


While it is great to have Home Owners Insurance in place, there is the need to review the scope of coverage from time to time. A policy that was adequate a decade ago may not provide the same level of protection today. Here are some reasons why taking a second look at the policy is a good idea. The Home is Larger Now.

Over the years, the home-owner added on to the home by finishing the attic, enclosing a back porch, and even adding another room to the backside of the house. The fact that there is more living space likely means that it would cost more to rebuild the home if a fire or some other catastrophic event took place. Check the limits on coverage in the current policy and compare them to the cost of rebuilding the home from the ground up. If the figures are not close, then it is time to make some changes to the coverage.

Improvements Have Been Made In addition to adding more living space, the home-owner has also make significant improvements to the basic structure. This can include replacing an older heating and cooling unit, the installation of siding and new insulation to the home, or maybe even building a new garage. Take the time to make sure those improvements are covered in the terms and conditions of the policy. If not, the time has come to make some changes.

Property Values Have Increased Over the years, the value of the home has increased to the point that the benefits in the Home Owners Insurance are no longer in line with that value. Since this could set the owner up for a loss if something major took place, it makes sense to revisit those limits and see what can be done to increase them. Many agents are happy to sit down with clients and come up with a plan that does meet the current needs.

Remember that it is ultimately the responsibility of the property owner to ensure the amount of insurance is adequate. Take a second look at the policy today and decide if the scope of coverage is still sufficient. If not, a quick call to the agent will begin the process of updating the coverage and ensuring that the provisions will provide a reasonable level of protection.

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