Most insurance companies will give you a notice approximately 30 to 60 days before your home insurance policy ends, at which time many people make the decision to either renew, modify, or cancel their policy. However, there are certain things that could warrant a review of your policy a little earlier. Do you know what they are? If not, then let this article be a helpful guide to learn when you should review your homeowners insurance policy.
When is it a Good Time to Review Your Home Insurance Policy?
Purchasing Expensive Items
You may not consider the purchase of expensive jewellery, art, or furniture to be something worth noting to your home insurance provider, but it is important that you do. While home insurance provides coverage for the actual structure and property itself, the contents within your home are also protected. If these items are not documented in your policy and you need to file a claim, you may not receive the full amount to recover the damaged or stolen items.
Your agent may recommend changes to your policy that will account for the newly acquired items or adding specific endorsements (also known as “add-ons”) to protect these items.
One of the best things about being a homeowner is having the ability to renovate any part of your home to serve your needs. And while you have the freedom to do so, it’s also worth speaking with your home insurance provider (prior to starting the renovations) to see if there are any insurance implications with the project.
If you plan on installing a pool or hot tub in your backyard, your insurance agent might recommend you increase the liability coverage you have on your home. If you’re planning to finish your basement, or any project you believe may add more value to your home, your agent can review your coverage options. Even something as simple as installing a water leak detection system may qualify you for discounts on your home insurance premiums as well.
Added Home Security
Like most insurance companies, we value when customers take steps to help ensure that their home is protected. If at some point during the year you’ve installed a home security system, contact your home insurance provider as you may be eligible for certain discounts.
New Occupants Entering or Leaving the Home
If there are any changes within the household, it’s also important to notify your insurance company. By doing so, you’re extending your home insurance coverage to ensure that occupants in the home are protected, even if they leave for an extended period of time.
For example, did you know that if your child goes away to school, your home policy may extend to protect their belongings at school? While the amount of coverage available depends on the type of policy you purchase, Allstate Canada offers coverage for students living away from home.
If you’re considering renting out a bedroom or basement apartment, you may want to speak with your insurer before your future tenant signs a lease agreement to see what coverage is right for you. It could even be beneficial to let your new tenant know that there are products they can purchase to protect themselves as well.
Some people have been considering starting a home business in light of COVID-19, but there are more things to consider than if an employee were simply working from home. For example, you may need to include a home business endorsement as an add-on to help mitigate the potential loss of business-related items like equipment, electronics, inventory, and furniture. You may also need to increase your liability coverage to protect yourself in case of an incident involving an employee or someone else trying to access your home.
Now, this is not an extensive list of things to consider when reviewing your home insurance policy; however, if you’re uncertain about when you need to speak with your insurance provider, it’s best to think to yourself “in the event of an accident, will I have adequate protection for the changes happening within my home”? If the answer is no, be sure to contact your insurance provider to review your policy to ensure that you and your loved ones are protected.
Disclaimer: This information has been provided for your convenience only and should not be construed as providing legal or insurance advice.