If you have a homeowner's insurance policy, you are off to a good start. However, just because you have a policy this factor alone does not mean that your home is fully protected. One common mistake that homeowners make is to assume that once they have a policy, they don't need to make any future changes to their coverage over the years.
However, this mistake is a very costly one. If you have had your homeowners' insurance policy for many years and you have not made any updates you could be in trouble. Learn about some of the times when updating a home insurance policy is critically important.
Whenever you make improvements to your home, you also increase the value of your home. Even a small renovation can easily cost a homeowner thousands of dollars. So, if something were to happen to your home, and you had not increased the value of your insurance policy, any compensation you receive from the insurance company might not be enough to restore your home. Anytime you make an update to your home you also need to update your insurance policy based on the value of the project.
Operating a home-based business is incredible and especially convenient. However, make sure you understand that every homeowner's insurance policy does not cover commercially related expenses.
For example, if you had a flood in the basement and you also store the supplies for your jewelry making business in the basement, the insurance company may not cover the loss for the commercial items. You will likely need to add a coverage component to ensure all of your losses for your business are covered.
If you have lived in your home for a number of years, you have probably acquired quite a few things over time. For example, you may have purchased a new bedroom set, custom recliner, or several large-screen televisions.
If you have made several significant purchases and have not updated the personal belongings coverage on your policy, you may not have enough coverage for the total value of your household belongings. Sit down and perform a quick home inventory assessment to determine if you have enough coverage for the cost of your items. Make sure you aren't leaving your property unprotected or under-protected. If you are not sure if your policy needs updating, contact an insurance agent that can help you.
You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.