Your agent is the best source of advice on how various home improvements may impact your premium.
Other Events That Should Trigger a Homeowners Policy Review
Home improvement isn't the only reason to review your policy. In a year characterized by life-altering upheavals, think of all the changes that may have occurred in your home:
- You're at home more often than not
- You're using company-issued equipment to work from home
- There are more people than usual living under your roof
- You bought high-ticket items, like jewelry, or installed a security system
Changes like these affect your insurance needs, which is why I suggest taking inventory of all modifications to your home and talking to your agent. After a loss is not the right time to discover that you do not have the right coverage. Your agent can help you update your policy so you're protected when it matters.
The best time to review your insurance is anytime you make changes like the ones described above, or at the least, 30 to 60 days before your policy's renewal date. If your coverage is complicated, talk to your agent closer to 60 days before renewal. One benefit of starting the process sooner: you may receive an advanced quote discount. Selective is one of the companies that offers this discount to new Personal Lines customers.
How to Review Your Policy
Begin by reviewing these three areas in your homeowners policy: the replacement value of your home (not the same as its market value), the contents in your home, and any scheduled specialty items.
Your insurance agent can help you determine the replacement value of your dwelling. Carefully estimate the replacement value of your home's contents. Some insurance companies automatically apply a percentage of the home value to establish a contents value, which may leave you over- or under-insured. Finally, specialty items like jewelry, watches, or other valuable items may not be part of the standard contents coverage, so you should obtain special coverage for them.
Transparency Has Value
A final piece of advice I'd like to offer about reviewing your homeowners insurance policy with your agent: Be transparent about anything that could affect premiums. Your agent's job is to get you the best coverage at the best price. The more they know about your home improvements and life changes, the better they can advise you and help protect you from expensive surprises if you need to file a claim down the road.
About the Author
Allen Anderson, Senior Vice President, Chief Underwriting Officer, Personal Lines, is responsible for all Personal Lines, Flood Insurance, and Contact Center operations across the company. Allen joined Selective in 2006. His prior experience includes 16 years with Allstate Insurance in various underwriting and product development roles. He earned a B.S. in Business Administration from Nazareth College in New York.