Do You Need to Adjust Your Homeowner’s Insurance?

Homeowner’s insurance is generally purchased when you buy your home. If you have a mortgage, the lender will require this insurance. However, most people do not think about whether the insurance should be adjusted from time to time. Your needs may change in five or ten years. Do you have enough insurance?

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Improvements to the Home

Have you made several improvements to your home? Perhaps you added an in-ground swimming pool. You may have had an extra room added for guests or a mother-in-law apartment behind your home. When you make changes or upgrades, you should make sure you have enough insurance to cover the extras that you have added. If not, in the event that a disaster should occur, you may not have enough coverage.

The value of your home will increase when you make upgrades. The cost to rebuild it as it is now may be quite different than it was when you first purchased the home. Home values can go up for other reasons. If you neighborhood is improved, this can result in increased home values. Have utilities been upgraded in your area? Are there more amenities or entertainment options nearby than there were when you bought the home?

Acquiring More Expensive Items

Over the years people generally acquire things that are more expensive. For example, your home may now have three or four flat screen televisions and other electronics. You may have bought some expensive jewelry. Maybe you purchased antiques that are valuable. What would happen if your home was burglarized and you had to replace these items? Very valuable items may require extra insurance.

An increase in your liability insurance may be warranted as well. If you regularly entertain, the risk of an accident increases. The swimming pool that you added could be a place for an accident. This is why companies such as Commercial Coverages, Inc. offer homeowners insurance daytona beach fl.

Even if someone slips and falls while at your home and is seriously injured, you could be sued. Liability insurance will cover this in two ways. They may pay for the damages incurred in the fall or if there is a lawsuit, your legal defense costs against the suit are covered.