How to Know When You Need a New Homeowners Insurance Policy

Homeowners insurance protects families from unanticipated catastrophes such as house fires, personal injuries, natural calamities, and theft. However, every policy is different. There may come a time in your life when you decide a policy or provider switch is due. If you feel like your current policy isn’t giving you the coverage you want, you aren’t satisfied with your provider, or your property isn’t valued at the same amount as it was when you first applied, it may be time for a change. 

This article will guide you through a few instances that necessitate a new policy or provider. Read on to learn more!

How to Know When it’s Time to Get a New Homeowners Insurance Policy

Insurance isn’t nearly as fun to shop for as a new pair of shoes, but taking your time during the purchase process is a must. Many people aren’t completely sure of the way insurance works. Some even believe that once they’ve purchased a policy, it will be good forever. Unfortunately, there are cases that warrant the need for a new homeowners insurance policy. 

Here are a few of the most common instances that should lead you to consider shopping for a new carrier or policy:

Your Property is Worth More (or Less)

If the value of your home has gone up or down by a significant amount, it may be time for you to consider changing your homeowners insurance policy. Homeowners insurance exists to cover the expenses when a part of your home gets damaged or destroyed. It should be able to cover any structures outside your home as well as cover your living expenses if you need to leave your home while it is being restored after a catastrophe. 

There are a number of reasons that a home’s value rises. One is that your neighbourhood has grown in value. Another is that you have recently had your home renovated—perhaps even expanded—which, in turn, typically means that your home is worth more in a sale. If the property is valued at over $750,000, you may want to shop around for a more extensive policy, which may not be available to the mass market. This protects your home and household in case damage occurs. 

If your home’s value has declined, you may want to get your property value reassessed so that you don’t need to pay more in insurance than necessary.

Your Net Worth Has Grown Significantly

Have you recently come into a lot of money? Has your company grown significantly in value since the time you last updated your homeowners insurance policy? If so, you may want to consider reassessing your insurance coverage.

With great money comes great responsibility. When you have a high net worth, you become more susceptible to claims. Whether a neighbor’s child trips and falls on your property or a passerby is hit by a wayward branch from your yard, it’s more likely for someone to make a claim against your home if they know you have money to spare. Protect yourself from paying out of pocket for such an incident by purchasing additional coverage.

You’re Paying Too Much

If the rates of your current insurance provider have gone up for no apparent reason, it may be high time for you to consider switching carriers. If you are lucky enough to be close to renewal, shop around for more affordable rates and gauge whether another plan may be more suitable for your home. 

Conclusion 

Shopping for homeowners insurance policies isn’t very exciting, but it is a step that will safeguard you and your family from dealing with the financial repercussions of natural disasters, fires, theft, and even injury. When your home is insured, you will feel a sense of relief, knowing that even in the worst case scenario, your account balance will stay intact.

Apex Insurance & Investment Group Agency gets you the best in homeowners insurance. Let us help assess your home and the policy that would provide enough coverage while not breaking the bank. If you are shopping for home insurance in Delray Beach, contact us today!

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