How Often Should I Review My Insurance Policies?

I receive a lot of questions about homeowner’s insurance, and more specifically, how often homeowners should review their policies. So, today, I wanted to share some insights around this topic that I hope are helpful to you. 

How Often Should I Review My Homeowner’s Policy? 

Instead of putting a specific time frame around this question, I typically advise my clients that it has more to do with circumstances. 

Here are a few examples, that if they occur, should result in you reviewing and contacting your insurance company.

  1. You make a major purchase or receive a gift that has substantial value. 

One aspect of a homeowner’s insurance policy that is often overlooked is the contents within your home. Your policy is not only intended to protect the actual structure of your home, but also the contents within it. Let’s say that you receive a gorgeous ring for your birthday, or you purchased an expensive piece of art. These items need to be insured! Contact our insurance company to discuss the details. Typically, they will ask for photos of the item and some type of appraisal. If anything were to happen to your home, adding the items to your policy will ensure that they are covered. 

  1. Your policy is up for renewal. 

This is a great time to get in touch with your insurance company for a few reasons. Review your policy to double-check that nothing has changed that would affect you needing more coverage. Also, it’s never a bad idea to reach out to ensure that the cost of your insurance isn’t changing. If for some reason, you’re informed the price is going up, you might want to start researching other companies, their rates, their reviews, and coverage details. 

  1. The number of people residing in your home changes. 

If you get married, divorced, or your child moves out to go to college, you’ll want to revisit your policy since the number of belongings in your home has most likely changed. You’ll want to make sure you aren’t paying to cover items that are no longer in the home and, on the flip side, that new items in the home are covered. 

  1. You make improvements to your home. 

Are you expanding your master bathroom, adding a room to your home, or installing a swimming pool? These are all great examples of times when you should reach out to your insurance company to discuss making changes to your homeowner’s policy. You definitely want to make sure that these modifications are noted and included in your policy. 

  1. You add safety features to your home. 

If you’ve added a high-tech fire alarm system to your home or live in an area that is prone to fires and received a fire mitigation certificate, you may be eligible for a discount on your policy. Make sure you notify your insurance company about these changes to see if you qualify for any safety discounts. 

  1. You start a home-based business. 

There are some homeowner’s insurance companies that do not insure businesses based out of the home, so be sure to call your insurance agent. If this is the case, you may have to take out a separate business / commercial policy.

  1. You rent out your home (or even a portion of it). 

Whether you rent out your whole home or just a portion on a site like Airbnb, it is critical that you contact your insurance company. It all depends on your policy and the company, but you may be required to take out a separate policy based on your unique circumstances.

What If Nothing Changes? Do I Still Need To Review My Homeowner’s Insurance Policy? 

Yes! It’s never a bad idea to review your policy. I would recommend doing this annually if there aren’t any circumstances that have changed. 

I hope this article helped provide a bit more information about reviewing your homeowner’s insurance policy. If you still have questions about this topic, please reach out. 

I am a CA licensed real estate broker serving the Pasadena community. If you have questions about homeowner’s insurance or need any assistance with buying or selling a home, I would be delighted to speak with you.