Home Insurance Articles
When Homeowners Insurance Should Be Modified Or Changed
2010-08-06
Homeowners insurance protects you when your property or belongings are damaged or stolen. But you should review your policy and make an insurance modification when you make changes to the home.
If you decide to rent your house to a tenant instead of living there you will need a landlord's rental property policy. This type of insurance covers the building and any outbuilding such as a shed or garage. It will also usually cover any personal belongings you have stored there, tools to upkeep the property, or items you have left in the dwelling for your tenant's use. You should consider the amount of liability coverage you will need. Avoid the temptation to keep your regular homeowners insurance policy and neglect to tell the insurer that you are renting the property. If you need to file a claim, it could be denied.
If you make renovations that add to the value of your home, you will want to review your policy to see if you need to up your coverage for the added value. You can raise the policy limit to cover the addition or upgrades that you made. Raising the square footage means that you must inform the insurance company.
Insurance modification is a good idea when you make a major purchase of items such as jewelry, furs, fine art or expensive electronics. You may need to add a personal articles floater. Your homeowners insurance covers your personal belongings up to a stated limit. You can choose replacement cost coverage which will allow you to re-buy the same item. If you choose actual cash value coverage, then the insurer will pay you the amount the item was worth at the time of the claim including depreciation. If you underestimate the value of your home's contents, you may not realize it until you need to file a claim.
If you have a pet or get a new one you should verify that your homeowners insurance does not exclude injuries if a dog bites someone on your property. Some insurers won't sell insurance to homeowners with certain breeds of dogs considered to be dangerous. Some breeds on this list have included German shepherds, Siberian Huskies, Dobermans, pit bulls and chows. Other insurance companies will cover the dog but with a supplemental policy with an additional premium. Exotic animals may also need supplemental coverage.
If you start a home business you will need to check with your insurer to see what would be covered regarding property specific to the business or additional liability. A homeowners insurance modification may be necessary. You may even need a commercial policy. Even if you are adding a home office you may need to cover valuable office equipment.