A homeowners insurance policy shouldn’t be looked at as a one-off agreement. Instead, it should be looked at as a dynamic document that can, and should, change from time-to-time to reflect similar changes in your life. That being said, here are a few reasons why you should review your homeowners insurance policy yearly.
Additions to Your Household
The amount of coverage provided by your homeowners insurance policy should be reviewed whenever the number of occupants in your home changes. For example, if you decide to get a dog you’ll want to make sure that your policy provides adequate liability protection in the event that someone is bitten. If the addition to your household happens to be human, you’ll want to ensure you’re covered against mishaps that could stem from having someone new in your home; roommates, and even romantic partners, may not take as good of care of your home as you would.
When you review your homeowners insurance policy with your insurance agent, make sure to ask them for any available discounts or deals that are currently being offered. Insurance companies provide special offers and incentives all the time, and if there’s anything available when you’re reviewing your policy, it’s possible to save a significant amount of money on a new one.
Homeowners insurance premiums can go up or down depending on a lot of factors, and nobody likes being blindsided by increased costs. Knowing whether or not your homeowners insurance premium is going to increase beforehand can help you better plan out your finances for the coming year and decide whether or not you want to renew your current policy. It’s particularly important to know about rising premiums if you pay your homeowners insurance premium out of an escrow account or some other form of automatic payments.