Why You Should Reevaluate Your Home Insurance Policy After Major Life Changes

Constantly reassess your home insurance policy when life changes.

When you purchase a home, your mortgage company requires you to obtain a home insurance policy before closing on the loan. However, obtaining insurance shouldn't be a one-time event. It's important to regularly re-evaluate your insurance policy, especially if you make changes to your home or acquire new assets. Here are a few tips to help you re-evaluate your home insurance policy:

1. Owning a dog. If you have recently purchased or adopted a dog, you need to speak with your agent about adjusting your insurance policy. Certain breeds of dogs can be a liability, and you want to ensure that you have the proper coverage in case your pet damages a neighbor's property or injures someone on your premises.

2. Starting a home-based business. If you operate a business from your home, you'll want to increase your insurance coverage to protect your business and any related equipment. You may also want to consider purchasing a separate business liability insurance policy.

“Obtaining insurance shouldn't be a one-time event.”

3. Acquiring new valuables. Did you recently inherit a classic car or purchase original artwork? If you acquire new assets, you need to update your insurance policy to ensure that they are covered. Your current policy may not provide enough coverage to protect these additional assets.

4. Adding home security. If you've taken steps to make your home safer and less prone to damage, such as installing an alarm system or an automatic water shut-off device, you may qualify for an insurance discount. Be sure to inform your insurer of these updates.

Re-evaluating your home insurance policy is a crucial step in protecting your assets and liabilities. By following these tips, you can be confident that you have the courage that you need in case of unforeseen events. If you're in the market to buy, sell, or invest in a home, don't hesitate to call or email us for help.