It is no big secret that carrying homeowners insurance is one of the most responsible decisions you can ever make as a homeowner. In fact, if you have your home financed through a mortgage company or bank, they will probably make homeowners insurance a requirement. However, too many homeowners pick up a basic policy with basic coverage options for their home, and then they never go back to reconsider if the policy would actually be enough if something did happen.
The truth is you should reexamine your policy on occasion to ensure everything about the current home is rightly protected. Here are a few signs it's time to up your homeowners-insurance coverage.
The values of properties in your neighborhood are on the rise.
If you have recently had your home appraised, and it was much higher than what it was when you first made the purchase, it is definitely a good sign that you need to up your homeowners-insurance coverage. When you are initially given a quote for coverage, the value of your home is considered, so if that has changed, the insurance provider needs to know. Otherwise, if your home is damaged or lost, you may not get enough money to actually cover the costs of the home's value.
You have made major and valuable home improvements.
Maybe you built on a room or two, completely remodeled the house, or even added a patio, deck, or private tennis court to your property. All of these upgrades to your property will up your home's overall value, which means you will also need more homeowners-insurance coverage. Not only should you alert the insurance company when you make changes to your property, but you should also make sure your overall total-loss payout would be enough to replace all those new features.
There have been recent changes in the threats your home is vulnerable to.
Perhaps there have been a lot more break-ins in your neighborhood. Perhaps wildfires have become a potential threat, or weather patterns have changed and your area sustains a lot of storm damage. If something in your area poses more threat than it once did, it is definitely time to reexamine your homeowners-insurance policy. You may be required to pick up specific policy packages to protect your home against certain threats, but in the end, having that additional coverage will be well worth it if something does happen.
To learn more, visit sites like http://www.statefundhomeinsurance.com.