We all experience changes in our lives. But, there are some that require you to update your home insurance broker to stay covered.
We know that changes happen in everyone’s life, big and small. Over the long-term, but even year to year – the typical duration of most home insurance policies. Conveniently, your home insurance coverage renews automatically every year. But, if you’ve experienced changes in certain aspects of your life, it might impact your insurance coverage.
When you sign your policy, the insurance you purchase covers the circumstance of your life at that time. And a lot can happen over the course of a year. At renewal time, consider how those circumstances have changed – changes that might concern your home insurance coverage. A review of your insurance and a chat with your home insurance broker will ensure that you maintain the appropriate protection.
Not familiar with possible changes that can influence your homeowner’s coverage? Here are the updates you should provide to your home insurance broker:
1. Home upgrades or renovations
When you first purchase your homeowner’s policy, your home insurance broker conducts a thorough assessment of your home to estimate the value of your coverage. A variety of factors were explored – the size of your home, the number of bathroom facilities, the type of heating, your electrical and plumbing, roofing material, etc. It’s the various facets of your home that will determine the cost to rebuild in case of total loss.
Again, this estimate is based on the state of your home when you purchased your insurance. Upgrades and renovations will add value to your home. Consequently, it’s vital that you update your home insurance broker about any improvements to ensure that you and your home have full coverage.
Extra bonus: there are often savings to be had in premiums when you improve your home, too. When you upgrade infrastructure systems (heat, plumbing, and electrical), it can save you money in reduced premiums. Talk to your home insurance broker!
2. When you purchase valuables
Your home insurance policy includes more than just the structure of the dwelling. It also covers your belongings and helps to replace them in the event of an insured loss. So, if you make a purchase of value between insurance renewals, update your home insurance broker to see if a reassessment of your coverage is necessary.
Wondering about the total value of your belongings? Check out this handy tool to help you calculate what you own.
3. Home-based business? Check with your home insurance broker
Growing in popularity over the past decade or so but exploding throughout these years of the COVID-19 pandemic, more people operate home-based businesses, large and small. If you have a business from your home, you should discuss it with your insurance broker.
Depending on what kind of business you operate and the scale of your operations, your existing homeowner’s policy might be adequate. It could cover some, or perhaps even all, facets of your home-based business. Other home businesses, perhaps not. Understand, too, that in the event of a claim, unreported business activity could invalidate parts of your home insurance.
Don’t risk a home-based business without the appropriate coverage. Questions? Talk to your broker.
4. Marriage or divorce? Update your broker!
Beyond just the obvious concerns around your home and your belongings, lifestyle changes can impact your homeowner’s coverage, too. If your relationship status has changed since your last renewal, it could necessitate an update to your home insurance policy.
Additionally, if you’ve transitioned from tenant insurance to homeowner’s insurance (or vice versa), you should update your home insurance broker. Similarly, talk to your agent if you add another homeowner. If you don’t update your broker about these life changes, you risk carrying inadequate coverage.
5. When people move into your house
The design of your home insurance included the number of people living in your home was a factor. The number of residents in your home is especially relevant if you have tenants or own a short-term rental. Regardless, when anyone moves in – or out – of a property you own, update your home insurance broker. You need to know that you have the appropriate insurance protection.
Noone’s immune – change happens. And that’s exciting! And while you may have other priorities over the details of your home insurance, it’s still important to your peace of mind and well-being. No matter the changes in your life, your home insurance broker wants to help answer any question and ensure you have the protection you need. Talk to us!