When to Review & Update Your Homeowners Insurance Policy
Keeping your homeowners insurance up to date is essential to ensure you have adequate coverage as your home and circumstances change. Here’s a guide on when to check in with your insurance agent and review your policy.
I. Key Life Events That Require an Insurance Review
Buying a Home
Get a quote before closing to ensure the home is insurable at a reasonable rate.
Review potential risks like flood zones, structural concerns, or past claims history.
Home Renovations or Upgrades
Kitchen or Bathroom Remodel: A new kitchen or bathroom increases home value and may require additional coverage.
Roof Replacement: A new roof may qualify you for discounts.
Electrical, Plumbing, or HVAC Upgrades: Some systems lower insurance risk and premiums.
Adding a Pool, Deck, or Hot Tub: Increased liability means higher coverage limits may be necessary.
Building an Addition or Detached Structure: New structures (sheds, garages, ADUs) need coverage.
Purchasing Expensive Items
Jewelry, artwork, collectibles, or electronics might exceed policy limits.
Consider adding a rider for high-value personal property.
Starting a Home-Based Business
Running a business from home may require additional coverage for liability and business equipment.
Home policies typically do not cover business-related losses.
Retirement or Major Income Changes
If you pay off your mortgage, you may have more flexibility in coverage options.
Consider adjusting coverage based on new lifestyle needs.
Renting Out Part of Your Home
Standard policies may not cover short-term rentals (Airbnb, Vrbo).
You may need landlord insurance or a rental endorsement.
A Family Member Moves In or Out
Elderly parents or adult children moving in may require liability adjustments.
A home now left vacant for extended periods could impact coverage.
Changes in Marital Status
Marriage: Combine policies for discounts and update personal property coverage.
Divorce: Remove a former spouse from the policy or adjust ownership details.
Significant Changes in Local Disaster Risk
If flood, wildfire, or hurricane risks increase in your area, you may need extra coverage.
Check FEMA flood zone changes annually.
II. Seasonal or Annual Insurance Check-Ins
Time of Year | Reason for Review |
January (New Year Review) | Evaluate overall coverage, update policy for new valuables, and check for policy changes. |
Spring (Storm Season Prep) | Ensure adequate wind/hail/flood coverage; inspect your roof for winter damage. |
Summer (Home Upgrades & Renovations) | Update coverage for new renovations, pools, decks, or detached structures. |
Fall (Disaster Season Readiness) | Wildfire and hurricane risk assessment; prepare for winter-related claims. |
December (End-of-Year Tax & Financial Planning) | Check for discounts, bundle policies, or adjust coverage before renewing. |
III. Policy Updates Based on Insurance Market Trends
Premium Increases: If your rate goes up, shop around for better coverage.
New Discounts: Some insurers offer new discounts for smart home security, impact-resistant roofs, or bundled policies.
State Regulation Changes: Laws and insurance requirements change over time. Stay updated.
IV. Questions to Ask Your Insurance Agent During a Review
Does my policy cover full replacement cost or actual cash value?
Am I covered for disasters common in my area (floods, earthquakes, hurricanes)?
Do I have enough personal property coverage for my valuables?
What discounts do I qualify for that I may not be using?
How will recent home improvements impact my policy?
Do I need additional liability coverage for a pool, rental unit, or home business?
Final Tip: Schedule an Annual Homeowners Insurance Check-Up
Make it a habit to set a calendar reminder once a year to review your policy, update your coverage, and compare rates with other providers. Keeping your policy up to date ensures you're always protected without overpaying!
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