When to Adjust Your Homeowners Insurance

Your house is one of your biggest investments and the place you call home, so it is important to have the right amount of insurance coverage to protect it. There are specific reasons you may want to adjust your insurance coverage, or even shop around for a different company to provide it.

Why change companies? Here are a couple of examples:

• Switching to save money - Shopping around for better policies is an important part of the process, and you should look for the best possible option.
  
  
• You need to increase or decrease your coverage in a way that is not offered by your current insurance company – Some companies have very specific packages that you cannot alter or customize to fit your needs. In that case, you need to search for a company that can better meet your specific insurance needs.

Typically, a homeowner can stay with the same insurance provider when adjustments are needed, but perhaps you are wondering when exactly an adjustment should be considered.

Here are a few examples of changes to your home that indicate you should consider adjustments to your coverage:

• Substantial upgrades to furnishings – If you recently replaced all your old furniture with new, quality furnishings or purchased expensive rugs, you may want to adjust your insurance to cover the full replacement value of the new contents of your home should disaster strike.
  
  
• Remodeling or renovation that increases home value - Anything you do to improve your home can substantially increase its value, and that means the dollar amount it would take to replace it. Your coverage should always match what you have. Say you have replaced the old shingles on your roof with newer, hail-resistant ones. Since your roof and your home is likely worth more with upgraded materials, you may want to increase your protection to cover repair bills if it's ever seriously damaged. But, by informing your insurance agent of this upgrade, you could also score a discount on your homeowners insurance.
  
  
• Beginning a home-based business - As a home-based business owner, you may buy computers, printers, and new technology to help you get the job done, but the coverage from a homeowners policy may not cover these additions. Since their value is not added into the estimated replacement value of the contents of your home yet, additional protection may be required.
  
  
• Putting in a swimming pool or hot tub - A pool or hot tub may make your back yard feel like your own private retreat, but it also increases the risk of injury on your property. You may need to increase your liability insurance to fully protect you from potential lawsuits in the event of an accident on your property.

Homeowners insurance is vital to your peace of mind and to protect your investment should disaster strike. It is always wise to review your coverage every few years and whenever you make improvements or additions to your home or property.