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Why your homeowners policy could use a spring refresh

Woman sitting on porch with a dog and a bush to plant, drinking coffee and looking at her phoneWoman sitting on porch with a dog and a bush to plant, drinking coffee and looking at her phone

How frequently do you check to make sure your insurance is working as intended? Maybe not as often as you check for potential home or car repairs, or as closely as you review your taxes each year. Some people see insurance as a “set it and forget” purchase, but just like other major items in your life, your insurance should be inspected every now and then to make sure your policies have kept up with changes in your life. 

With spring now upon us, why not include your insurance policy in your spring cleaning plans? Here are a few reasons to review your policy and make sure you’re properly insured.

Home renovations – If you have already done (or plan to do) some home remodeling, your policy may need to be updated to reflect these improvements. After your home undergoes renovation, your policy could become out of date because it no longer reflects your upgraded living situation. That means you could be underinsured, and in the event of a natural disaster or accident where your home is damaged, you risk not being reimbursed the full cost of repair.

Making sure your homeowners policy is up to date is important even without recent home improvements. The replacement cost for a homeowners policy is defined as the amount of money available to rebuild your home, using materials at current costs and up to your coverage limit. With home building materials and construction labor also on the rise, rebuilding could become even more expensive than in the recent past. If the cost to rebuild your home exceeds the replacement cost of your policy, the difference would be paid by the homeowners themselves. Speak with an agent to find out if your homeowners policy adequately covers your home’s replacement cost.

Travel plans – If you have big plans to take a trip this year, your homeowners policy might also come into play. Some homeowners and renters policies offer protection for your personal property while you’re out on vacation, while some coverage can also be extended to include items that get lost or stolen while in transit with you. Liability coverage is another important consideration. Liability protects you if you or a member of your family accidently injure someone or cause damage to property while traveling on vacation. If you’re heading abroad, some policies even provide worldwide liability coverage. It’s worth checking with your agent to see how your current insurance policy covers you while you travel, and to make sure you are fully covered.

Furthermore, if you are thinking about renting out your home while you are away, it’s important to consider those insurance implications. Renting your home is not typically covered by your homeowners policy, and would require an endorsement or an entirely separate policy. That means that any damage caused to your home while being rented is not treated the same as other home damage when it comes to insurance coverage. Make sure to check if you need any additional coverage added to your policy.

New liabilities – Many homeowners policies provide a basic limit of personal liability insurance. However, some life changes may require you to reconsider those liability coverage limits. Consider what might be at stake in the event of an injury sustained on your property—or damage to someone else’s property by you, a family member or your pet—resulting in a lawsuit.

Review your homeowners policy to make sure you can cover all of your assets. If your family has grown in your home to include children, relatives or even a new dog, it might be time to update your policy to reflect these changes.  

No matter what kind of home insurance questions you have, the experts at First Tech Insurance Services can help you determine which insurance plan will be the best fit for your budget and for each stage of your life. Schedule some time to speak with one of our agents today