As a homeowner in Texas, you should regularly review your home insurance policy. This basically entails going over your current policy to evaluate what's covered and the level of financial protection provided. You should have an adequate amount of coverage that can repair or rebuild your property, replace personal belongings, and protect against liability claims. By reviewing your home insurance policy annually, you can ensure that you aren't overpaying or underpaying for your homeowners insurance policy.
Here are ten reasons why you should review your homeowners insurance.
If you decide to make some improvements in your property, such as renovating your bathrooms, basement, or kitchen or adding a deck, these improvements will raise the replacement cost in case of damage by a covered peril. Therefore, you should talk to your insurance provider to make the necessary adjustments to your coverage.
When purchasing a homeowners policy, you get to determine the value of your personal contents. However, your personal contents will likely increase over time, or you may replace certain items with higher-value items. For instance, if you've acquired expensive items such as artwork, electronics, firearms, and jewelry after purchasing your policy, your homeowners policy may not sufficiently cover those items. Therefore, you should talk to your agent to ensure your policy adequately covers all your valuables.
Hot tubs, trampolines, and swimming pools can be delightful additions to your backyard, but they also expose you to new liability risks. Therefore, you should ensure you have sufficient liability coverage to shield yourself in case someone is hurt due to these additions.
As your personal assets increase over time, thanks to an increase in income, savings, and investments, you should ensure that your homeowners insurance provides you with sufficient liability coverage that accounts for the changes in your net worth. As your net worth increases, you are susceptible to greater risks in case liability claims are made against you.
If you decide to start a home-based business, you will need to ensure your liability coverage sufficiently protects your business operations. These include office equipment, computers, cameras, lights, art supplies, or any other item that's part of your business operations.
Some pets don't require extra coverage or don't impact your insurance rates. However, some insurance providers assign higher risk to particular breeds based on historical information, resulting in higher premiums.
If you add security-enhancing components to your property, such as home surveillance or alarms, you should talk to your agent to see if you can get discounts on your homeowners policy.
If you decide to rent out your home, whether to long-term tenants or on platforms such as Airbnb, you should inquire from your insurer whether your policy still applies even when you're renting out the property.
Insurers continually change the kinds of discounts they provide. Ensure you are always aware of the discounts that are available to you.
These are a few reasons why you should review your homeowners insurance periodically. At Reata Insurance Group, we can help you find a homeowners insurance policy that suits your unique needs. To get started on your personalized coverage, contact us today!