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4 Changes That Can Affect Your Homeowners Insurance

It’s now that time of year when many homeowners get to work on improving their homes. Many people like to use the warmer summer months to tackle home improvement projects that they’ve been thinking about through the winter. It’s important to remember that if you make improvements or renovations to your home, changes can affect your homeowners insurance.

Homeowner’s insurance is a necessity but one that many homeowners rarely think about until they need to make a claim. According to insurance industry stats, almost 20% of homeowners are currently underinsured. Homeowners insurance should be reviewed and updated whenever there are major changes to the value of your home or its contents.

Here are just a few circumstances that would prompt an update to your homeowner’s policy:

  • Major Renovations – If you have made major renovations to your home or added finished square footage, you should review and update your homeowner’s policy. Finishing a basement, installing a new kitchen, or updating a bathroom is just a few examples of improvements that can increase the value of your home.
  • Increased Liability – While adding a pool can increase the value of your home it will also increase your liability. If you have recently put in a pool or even just a trampoline you should have us review your policy and make sure you are carrying an appropriate amount of liability coverage.
  • High Ticket Belongings – If you are in the market for high-end jewelry, electronics, or artwork you should have a look at your policy. The majority of homeowner policies have a modest coverage limit on luxury items. A review of your policy will determine if you have enough coverage. You may need to up your coverage limits or add a rider to your current policy to make sure your high-end belongings are protected.
  • Security Upgrades – Upgrading your home could result in a discount on your homeowner policy. Adding a burglar alarm, hard-wired smoke detectors, or a sprinkler system can often lower your premium. The same is true of updating heating and cooling systems. If you have recently upgraded your home give us a call to see if any additional discounts can be applied to your policy.

Carrying the correct amount of homeowner’s protection is very important, and sometimes things can affect your insurance policy even if you don’t know it, like the changes above.

If you have made any changes to the value of your home lately please give us a call for a review of your policy. We’re here to help make sure that you and your family are fully protected.


Published with permission from BGI Systems. Source.