Homeowners should obtain a new quote for their home insurance every two years. This will enable you to maintain the proper amount of coverage and do so without overpaying. Home insurance protects a family’s most valuable asset and, in many cases, most of their personal belongings. Obtaining the optimal level of insurance, without overpaying, should be a homeowner’s objective.
Obtaining an insurance quote for your home is an easy and free process. All you have to do is contact a licensed property and casualty insurance agent and let them know where your home is located and the level of coverage you need. The agent will take it from there and will provide you with a quote or estimate of their recommended coverage along with the annual premium.
The following are 7 reasons why homeowners should obtain a new home insurance quote every 2 years.
1. Home values change. The value and more importantly the replacement value of your home can dramatically change from year-to-year. When the value of your home changes, you should increase, or decrease, the amount of coverage you have on your home. While the level of coverage you have will impact the premium you pay, any increase will be worth the additional protection you receive.
2. Insurance rates can vary from year-to-year. Just as the value of your home can change over the course of a two year period, rates can and do change. In order to make sure you are not overpaying, by getting several quotes from different carriers, you can compare rates to obtain the optimal coverage/premium available for your area.
3. The contents of your home may change dramatically from one year to the next. Over the course of a two year period you may purchase new furniture, electronics, appliances, jewelry and more. Your homeowners insurance not only covers your physical home but it also protects the value its contents. As the value of the contents of your home changes, you will want to make certain that your coverage keep pace.
4. You may be eligible for additional discounts. Insurance companies periodically change the discounts they have available for their policyholders. When you obtain a new quote, you can ask about affinity offers, bundled rates and more. These discounts can save you money on your home insurance.
5. Home improvement projects. Over a two year period, you may put in a pool, replace your roof, install a home security system, add a new sunroom, install solar panels and more. Home improvement projects can both increase, or decrease, your coverage needs and the premium you pay.
6. Your lender’s insurance requirements may have changed. Mortgage lenders require that you maintain a certain level of coverage on your home, based upon the amount of your mortgage. As the amount you owe on your home changes, you may be able to adjust the amount of coverage you have on your home.
7. The occupants of your home changes. Most home insurance includes coverage for medical bills, should someone get hurt while in your home. If the number of occupants change you may be able to adjust the level of coverage you have on your home.