Does Your Homeowner's Insurance Policy Need a Checkup?

Did you know that your home insurance policy renews each year? While you do not have to wait for the renewal to make changes, it maybe the perfect opportunity to shop around for better pricing, and update your coverage if needed. It may also be a good time to ask your carrier about discounts. Right between 30-60 days before the end of your current policy, you should receive a home insurance renewal statement. Here are a few things to consider as you plan to take action on your policy renewal.

Things That May Affect Your Rates

• Did you file a claim?

• Is your home exposed to more risk like flooding?

• Did your credit score went up or down? Generally, homeowners with lower credit scores are considered high risk and are more likely to file frequent claims.

• Roof condition

• Marital status

• Deductible

• Replacement cost

• Dog breed such as pit bulls and Rottweilers

Changes Your Insurance Company Needs to Know About

• Are you renting out any portion of your home?

• Any lifestyle changes like kids went off to college?

• Did you start a new business?

• Remodel your home?

• Got married?

• Divorce?

• Purchase any big ticket item?

• Add safety devices like deadbolts, security systems or fire extinguishers?

• Did you adopt a pet? Many insurance companies have breed and animal restrictions. You may want to call your carrier before the adoption.

Remember, damages from flood are not generally covered by standard home insurance policy. You will need flood insurance to cover that. Also, a standard homeowner's policy may not cover every item in your home, like electronic, clothing, and furniture. Just like expensive items, you may also need additional coverage for these items as well.

There are multiple factors that goes into calculating the cost of your policy. Shopping around and comparing rates will be the best way to ensure you get, not only the right coverage, but the right price as well. Make sure to get clarity from your insurance agent about anything you do not understand and review your policy carefully.

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana