When should I update my home insurance policy?

Answer:
You should update your home insurance policy regularly

because rebuilding costs can rise dramatically in short periods of time. The amount of insurance you had five years ago may not be sufficient to rebuild your home today.

In addition to regular reviews, there are certain instances where you need to update your home insurance policy right away. For example, if you have improved your home, you will need to update the policy to cover the improvements. Your old policy may not be adequate to replace your expensive new cabinetry or flooring.

If you have added onto your home such as a room addition, your policy will need to be updated so that you have enough coverage to completely rebuild your home should it be destroyed.

Adding a pool is another trigger for updating your policy. Not only will you need extended coverage, you may need additional liability coverage. Pools are covered under the “other structures” section of your policy which is usually 10%. This means if your home is insured for $200,000 and your pool gets destroyed during a covered event, you will only have $20,000 worth of coverage to replace it (along with all of the other structures that might be damaged).

Update your home insurance policy whenever you do something to your home that will affect your coverage or your premium. For example, if you add a home security system, update your insurance and enjoy a discount!