When Do You Need To Update Your Home Insurance Policy?
When you have a home insurance policy, it's easy to just forget about it. However, if your situation changes, you may need to update it. Here are some of the things that could affect your home insurance policy.
A New Shed
Your home insurance policy typically only covers named structures. You might have limited coverage for outdoor things like furniture or garden tools. However, separate buildings like a shed or garage typically aren't covered unless you buy specific coverage for them.
If you want to protect your investment in your shed, you'll need to make sure you add that coverage. In addition, you should also be careful that a building attached to or next to your home won't invalidate your main coverage if a disaster happens when you don't have coverage on that extra building.
Paying Off or Refinancing Your Mortgage
Your mortgage lender requires you to name them in your home insurance policy so that they can be paid if something happens to your home. Once you pay off your mortgage, you can remove them from your policy. If you refinance your mortgage, you'll need to add the new lender and remove the old lender.
This is usually just a matter of filling out paperwork and won't affect your coverage or premium. However, the big thing to be aware of is that if you don't have your current lender named on your insurance policy, it could be a default on your mortgage.
Replacing Your Roof
The age of your roof is a factor in your home insurance premium. Your roof is one of your home's primary sources of protection against weather disasters. Some home insurance companies will even inspect your roof before renewing or issuing a policy.
The good news is that replacing your roof will usually mean that your rates will go down. This assumes that you choose a new roof with the same or better safety features.
Adding a Room
If you add a new room, it changes the square footage and structure of your home. That changes how things like fires could impact your home and also changes the value of your home to be insured.
A renovation might be building a new area altogether or converting a garage, attic, or sunroom into a living area. Talk to your home insurance company before you start because you will need coverage both during construction and once you're done.
To get a new home insurance quote, contact a local home insurance agent today.