Home Insurance Articles
When To Upgrade Your Current Home Insurance Coverage
2010-06-24
Buying a house can be a very hectic time for anyone who has ever done it. All the work that needs to be done before actually going to the settlement table and receiving the keys is a bit daunting. You will need to have the house inspected, repairs negotiated, an appraisal performed on the property, secure a mortgage, and of course, purchase home insurance. Unfortunately, once settlement has gone through, most people never give another thought to their home insurance coverage. You can upgrade coverage periodically, as this is extremely important as your life, your home, and your possessions change.
Let's take marriage as an example; it is a major life change in many ways, but it also has significant repercussions for your home insurance. If you decide to tie the knot and share your life and home with someone, you have now doubled the possessions under your roof. Your homeowner's policy not only covers the cost of replacing the dwelling but all of your personal items as well; clothing, TV's, jewelry, furniture, etc. More than likely in this case, the amount of content coverage on your home insurance policy would need to be increased to account for all the new stuff.
After spending hours trying to fit all the new fancy China that you received for your wedding (plus the stacks of dishes that your spouse brought too) into your outdated kitchen, you and your loved one decide that the kitchen is just not big enough to suit the two of you. Kitchen remodels typically cost in a range of $30,000-$50,000 for the average homeowner and much more with top-end materials. To keep wedded harmony, you agree to put in gorgeous (and very large) solid cherry cabinets and granite countertops. Now, to protect your new luxurious kitchen, it's time to upgrade the coverage on your dwelling replacement cost so that your home insurance policy reflects these new materials. After all, when you first purchased the home, your kitchen was particle board and laminate and the coverage was lower because if the home needed to be rebuilt, these less expensive materials would be used.
These are just a few examples of changes to your life and your home that could affect your home insurance and cause a need to upgrade your coverage. The important thing to remember is to reevaluate yearly what has changed over the prior year. Did you buy a new top of the line surround sound system? Did you add an addition onto your home, or have the whole house resided? Large purchases, additions, renovations, and changes in needs are all things to keep in mind in order to decide when to upgrade your home insurance coverage.