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Signs You Need to Update Your Homeowners Insurance in 2023

Dealing with insurance of any kind can be a daunting experience if you do not approach the subject correctly. You probably already know that, though, since you have already obtained a good home and contents policy.

When it comes time to renew the policy for the year, do you know what to look for before signing on the dotted line again? You should do a few checks before agreeing to keep the same policy because you may find out the hard way that you are not covered in the way you thought you were. 

  • Increase In Value – If you have noticed that the value of your house has increased over the last year or so, you will want to reevaluate the policy amounts you have. If you have not been keeping track of your home, the same applies if the houses around you have increased in value. When this happens, you will often end up having a home worth more than the payout limits of the old policy, so check to see if you need to increase the coverage amounts before you agree to a contract offer.
  • Home improvements – If you have made some remodeling changes or home improvements, you may not be covered entirely on your current insurance policy. That especially rings true if you switch anything within the bedrooms or kitchen or if you have added to the original square footage by building a new room or porch. This may not seem like a big enough difference when authorizing your yearly insurance policy, but these areas can drastically increase the value of your house.
  • Comparing Insurance Carriers – Most of the time, when you want to renew your home and contents insurance, it is simply easier to re-sign with the current carrier with the same policy you have been using. This is never how homeowners insurance should be approached because it could leave you out in the cold if a claim should ever be filed. Go to an online comparison site, such as iSelect, and compare as many offers as possible. Pick the one that has the best details, as well as the lowest cost. This is actually something that you should be doing every year to make sure you are getting the best bang for your buck.
  • Inflation – The inflation throughout the country is steadily increasing, as is the cost of living, purchasing, and selling. As a homeowner, this means that your insurance rates will increase, but your coverage amounts will stay the same. You need to analyze the value of all your buildings, content, and collectibles on the property. If any of the value of these things has gone up, which they should have, you need to verify that your current policy is still high enough to cover everything. That is why it is always a good idea to get a policy that is a little more than you need, offering you coverage even when the market fluctuates.

The most important thing to remember when it is time to renew your current homeowner’s policy in 2023 is that the cost of everything around you will have gone up, including the value of your property. Take the time to go through your policy to ensure that you will still be fully covered if something should happen. You never truly know when a natural disaster will happen or when the group down the road will decide to vandalize the homes in the area. Make sure that the coverage amounts actually cover all the expenses that may come up during a claim. If you can add a little cushion on the top-end amounts, it is suggested to do it, just to play it safe.