It might not be as obvious as a drafty window, but your home insurance is just as important to maintain.
If you don’t review and update your policy regularly, you could miss out on some substantial discounts and overlook glaring coverage gaps.
It’s a good idea to speak to your Farmers agent and review your policy if you:
1. Buy a home
Coverage for your new home is usually a must-have. First things first though, make sure that you’re insuring the home for the value you want – likely the home’s estimated reconstruction cost and not its current market value.
Also, there are certain scenarios to consider when taking a second look at your policy:
- If you’re buying a second home. Look into Seasonal and Vacation Home Insurance
- If you’re renting out an investment property, you may need Landlord Insurance
- If you’re moving to a disaster-prone area. Most home insurance policies don’t include earthquake or flood insurance coverage. Consider adding those coverages to your existing policy.
Overhauling your kitchen? Building a new deck? Major home renovations usually boost your home’s value, but they can also hike up the cost of rebuilding your home in the event of loss.
That’s the reason you probably got home insurance in the first place – to allow you to replace or repair your home if it gets damaged or destroyed. So before and after remodeling, make sure you work with your Farmers agent to re-assess your home’s value and possibly cover any increases.
Keep in mind that you could qualify for homeowners insurance discounts for making certain upgrades. Even a small tweak, like adding a safety feature (burglar alarms, sprinklers etc.) could earn you a discount.
3. Purchase big-ticket items
You may not think to contact your insurance agent after buying a pricey necklace or gigantic flat screen TV, but it’s a really smart move. Although your standard homeowner’s policy protects valuables against a covered loss or theft, coverage is only provided up to a certain limit. When you make a substantial purchase, consider reviewing and increasing your limits and coverage.
4. Make changes to your lifestyle
Certain life events may alter your assets and your risk tolerance, and those can change how much home insurance coverage you want. Speak with your agent after any major life change, to make sure you’re still covered the way you want.
Here are some scenarios where reviewing your policy could help save you money:
- You’ve retired: Farmers offers homeowners insurance discounts to retirees from certain professions.
- You quit smoking: Did you know Farmers offers a discount (in some States) if you haven’t smoked in two years?
Many of us purchase homeowners insurance and forget about it, assuming it will always cover the property no matter what happens. But neglecting your policy could lead to coverage gaps and unexpected out-of-pocket costs. Keep in touch with us (858-487-9200) to make sure that your coverage is up-to-date.