When moving into a new home, there are countless documents and policies that must be completed, reviewed, etc. With all of the excitement of enjoying a new home, many of these things get swept under the rug and only come back up when you are forced to review the documents. For example, most homeowners review their home insurance policies when shopping and purchasing the insurance – but, they rarely take the time to evaluate their policy again until they have to make a claim. Sound familiar?
Worry not! Here are three important reasons to take a second look at your home insurance policy and some things to consider when doing so:
1: Your home insurance may not cover everything you may have assumed:
Home Insurance is an absolute must when carrying a mortgage on your home. But, not all polices are created equal and, sometimes, additional insurance policies could be a very wise investment. A few items that generally are not covered or require additional insurance:
- Ground Movement
- Unpermitted home improvements
- Government Action
- Certain dog breeds
- Mold damage
- Wind damage in certain areas
Like we said, not all polices are created equal. If any of these items are relevant to you, we suggest you take a second look and consider your available options.
2: You are likely missing out on significant discounts:
Have you made any upgrades to your home since getting your insurance? Did you make sure to get all of your available discounts when you purchased the policy? Here are some of the most common items that may qualify you for discounts:
- New wiring
- Living in a gated community
- New roofing
- Belonging to an HOA
- Living near a fire department
- New renovations
- Flood and gas sensors
- Home security system
- Living in a safe neighborhood
3: If you don’t like what you find, you’re not stuck!
Today, many homeowner’s insurance policies are paid from an escrow account that is managed by a lender or mortgage company. Since its already paid for, you must be stuck until the end of your policy, right? Not at all. Every policy is slightly different. But, you can generally switch providers any time you want a better one. You can simply work with the insurance company to get a refund for the balance and get that money directly to your new provider.
Source: Home Owners Network