Chances are that when you took out your mortgage, your lender required you to also sign up for a homeowners insurance policy. If you are saying to yourself, “Oh, that’s right!” don’t be alarmed. If you haven’t thought about this policy since then, this is fairly common. However, it is important to remember that if you have experienced some home and life changes, it may be time to review your homeowners insurance policy. Doing this can not only help you save money, but it can also ensure that you have adequate financial protection should something happen to your home.
Below are some events that require you to review your homeowners insurance.
Home Addition or Remodeling
After adding a new bedroom, updating the kitchen, or putting on a new roof, what’s the first thing you want to do? Show your friends? Turn to social media? Sure, you can do these things, but more importantly, make sure you contact your homeowners insurance agent. Major remodels could increase the value of your home, making it more expensive to rebuild and repair. While this may raise your premiums, it’s worth it because you know that you are properly covered if disaster strikes.
Bought (Or Sold) An Expensive Item
One of the great benefits of home insurance is that if someone breaks into your home and steals your valuables, the insurance company will cover your losses. However, if you recently purchased some big-ticket items like jewelry, electronics, or a half-shredded piece of art made by Banksy, it’s time to contact your home insurance agent. He or she will be able to adjust your limits and coverage. If you don’t do this, you will risk coming up short in the event of missing valuables.
Stopped Smoking
Did you know that quitting smoking is not only great for your health, but also your wallet? And not just because you are no longer spending money on cigarettes. In fact, many insurance companies offer discounts for those who stop smoking. This is because smokers are riskier to insure. They pose a greater threat to homes, particularly because of their penchant for causing fire damage. If you have kicked the habit, be sure to let your insurance agent know to find out if you are eligible for any discounts.
Started Living The Retired Life
Retirement is all about the benefits. With so many potential benefits, it can be hard to keep them straight. But one potential benefit you might have overlooked is discounted home insurance rates. Many home insurance companies offer discounts for retirees from certain professions. Why is this? Because retired people typically spend more time at home. This means that when something goes wrong with the home or a potential threat is emerging, they are usually there to handle the situation before it gets out of hand. Also, because they tend to be homebodies, they are also less likely to be burglarized.
Added An Alarm System
Alarm systems have a number of obvious benefits. Among the top, this tried-and-true security measure makes it less likely that a thief will break into your home. Additionally, it can also lower your insurance premium. Contact your insurance agent to find out how much a security system can reduce your insurance premium. Unfortunately, there are no discounts for those who stick the alarm system sign outside of their home that reads, “This house is protected by ____.”
Built A Swimming Pool
A pool is a great way to enhance your backyard, and it’ll give you the perfect place to relax on hot summer days. On top of this, it can be the perfect place to entertain, exercise, and relieve stress. However, all of these great benefits can come at a cost. Not only is a pool installation pricey, but it can also increase the cost of your insurance policy. This is because pools can be dangerous and as a pool owner, you are liable if someone is injured or drowns using your pool (this can even be true for those who didn’t ask for permission to take a dip in your pool). In short, this is one change you definitely want to share with your home insurance agent.
Bought A Dog
Many homeowners insurance policies cover dog bites. But this should not be assumed. If you are the proud new owner of a little canine, it may be hard to imagine your little pup ever growing up to be a big (and potentially dangerous) dog capable of biting someone on your property. But this is the reality of owning a dog whether you can accept it or not. Don’t keep your pooch a secret. This could cost you in the long run. Let your insurance agent know that your family has grown.
Don’t assume that just because you have homeowners insurance, your property will always be covered. This is not always true. All of these changes listed above can affect your policy and potentially lead to serious out-of-pocket expenses. Keep in touch with your homeowners insurance agent and let him or her know of all changes.
If you have questions about your home insurance policy or would like to set up a home insurance policy, contact Mountain Plains Agency, Inc. Whether you have a home, condo, or townhouse, we can tailor a policy to your individual needs. Based in Northern Colorado, we proudly serve Fort Collins, Greeley, Loveland, Boulder, and other surrounding areas. Learn more about us here and contact us today to get your free quote.
