A homeowners insurance policy needs to be renewed each year. Things can often change in a year, which is why it’s important to always look over your homeowners insurance before renewing it. Taking the time to go over the details of your new policy can help you decide if you should renew with your current provider or look for another. An insurance agency can compare multiple policies with the top companies to help you find one that meets your needs and saves you money.
Here are the top three things you should always check before renewing your insurance policy.
1) Review Changes in Your Coverage Limits
One of the first things to review is your coverage limits. Over the course of a year, many things can change that might increase the value of your home or the cost to rebuild it. For example, if you’ve made any improvements or additions to your property, it’s likely that your home’s value has increased. Similarly, general inflation or changes in the building costs in your area could mean that the current coverage limits are no longer sufficient to cover a total rebuild of your home.
Reviewing your personal property coverage is also a wise idea. High-value items like jewelry, art, or electronics might require additional coverage beyond the typical limits of a standard policy. Make sure your policy reflects any new purchases or changes in the value of your possessions. Looking over the details of your policy always takes time, but it’s well worth the effort to make sure you have enough insurance coverage.
2) Consider the Deductible Amount
The deductible is how much you need to pay out of pocket before your homeowners insurance takes care of the rest. Adjusting your deductible can often make a significant impact on your annual premium. A higher deductible generally lowers your premium, but you will pay more if you need to file a claim. Weighing the different pros and cons of a higher deductible is key before making a decision.
You should always take a moment to evaluate your financial situation. If you’ve built up some savings, you might be more comfortable raising your deductible to save on premiums. On the other hand, if you’re finding the higher deductible to be too stressful, it might be time to lower it to avoid potential financial strain if you ever make a claim. You can also reach out to an insurance agency if you have any questions.
3) Examine Discounts and Loyalty Programs
Insurance companies often update their discount programs and incentives. Before your homeowners insurance policy renews, check to see if you qualify for any new discounts. For example, some insurers offer discounts for upgraded security systems, newly installed storm shutters, or smoke detectors. These modifications not only improve your home’s safety but can also reduce your insurance costs.
Additionally, many insurers provide loyalty discounts to long-term customers. If you’ve been with your insurer for several years and haven’t claimed a loyalty discount, ask about your eligibility. It’s also a good moment to compare your policy with offers from other companies to make sure you are getting the best value for your money. Loyalty should not come at the cost of potential savings from better-suited offers elsewhere.
Bonus Tip – Check for Policy Updates and Exclusions
Beyond the usual checks, it’s important to stay informed about any updates or exclusions that may have been added to your policy. Insurance companies periodically adjust their policies to reflect new risks or regulatory changes. These adjustments can include updates to what is covered under your standard policy or what is excluded.
For example, natural disasters like floods or earthquakes typically require separate coverage. If your area has recently been reclassified as a higher risk for certain natural events, standard policies may not cover these without additional riders. Always read the fine print when your policy renews to avoid any surprises. Understanding the scope of your coverage is essential to protecting your home and belongings.
Looking for Homeowners Insurance? Give Wellcovered Insurance a Call
Wellcovered Insurance specializes in helping people find the right insurance to meet their needs. Our team will look over your policy and compare all of your options to help you find the best policy for your situation.
We also offer many other types of insurance, such as auto, boat, commercial property, professional liability, and much more. If you have any questions, you can visit our office in Orange City or give us a call. We also take pride in being active in the local community so you’ll likely see us around the Volusia County area.
Reach out to us today if you are in need of homeowners insurance or wondering if the plan you have is still the best option for your needs.
