Many people buy home insurance when they first buy their home then forget about it. That means they might not have the best deal or the right coverages. Here are some times you should think about changing home insurance coverage.
You Did a Major Renovation
If you did a major renovation, it might change the value of your home If you added features that require additional coverage or added features that might give you discounts, you should update your policy. Any time you do major work on your home, you should find out whether you need to update your insurance or how that work will be covered.
While you can usually continue with the same home insurance provider, that might not always be the best option. Different insurance companies have different formulas for setting their rates. Even if your current insurance company has always been the cheapest in the past, if you have a major change, they may no longer be your best option.
Your Rates Went Up After a Local Disaster
If your area had a hurricane, flooding, tornado, blizzard, or another natural disaster, your rates might go up even if you didn't have to file a claim. That's because disasters cause insurance companies to need to make up what they had to pay out and reassess your risk for the future.
Different insurance companies might have been impacted differently, bundle you with different groups of neighbors, or have different numbers of customers in the affected area. Even if all of the insurance companies in your area raised their rates, you may find that your current insurance company raised their rates the most.
Your Credit Score Goes Up
Your credit score can often change your home insurance rates. People with higher credit scores statistically file fewer claims and are more likely to pay their insurance premiums on time, so insurance companies may give them better rates. If you've had a large improvement in your credit score, it can be worth shopping around to see if you can get a better rate.
Your Policy Terms Change
Insurance companies may change your policy terms when it's time for a renewal. For example, they might no longer cover your shed. Sometimes, policy changes are for legal reasons, but it's also common that it's simply a business decision by a single insurance company. Other insurance companies may be able to give you terms that work better for you.
To learn more about making sure you have the right home insurance provider, talk to a local insurance company today.