Owning a home can come with many rewards. You have the freedom of a space that is entirely your own. You are investing in a property you may one day sell for profit.
And you are in charge of what happens to your home.
Being in charge can be a double-edged sword, however.
While it may be great to have a say in every piece of your property, being a homeowner also means everything falls on your shoulders.
Unlike renting, you are solely responsible for the upkeep and maintenance of your home.
From harsh weather to unexpected disasters, there are many instances where you may not be able to afford the repairs your home needs out of pocket.
To save some costs, many people purchase homeowners insurance.
This policy provides coverage from many possible scenarios that could damage your home or property.
When looking for a policy, you will want the best home insurance you can find for the price.
With so many options available, many people opt to re-shop for their homeowners insurance every year.
Doing this may seem like extra work. But there are many benefits to looking into other insurance options each year.
#1 – Re-shop for a Lower Insurance Premium
Life is expensive, and many people look for savings wherever they can.
From coupons to sales, it’s a great feeling knowing you saved yourself some money rather than paying full price.
That same feeling can also apply to your home insurance. Re-shopping every year can be a great way to find a lower premium than what you’re currently paying.
Or, you may even find that your current premium is the lowest you can get, leaving you with a good feeling knowing you’re not overpaying for your coverage.
Whether you find a lower monthly premium elsewhere or determine your current policy is still a great deal, re-shopping for homeowners insurance each year is a great way to save yourself some serious money.
#2 – Ensure Your Insurance Covers Your Needs
Insurance is a business, and sometimes companies have to make choices that protect their business.
At times, this could mean dropping specific coverage options based on risk. Risks can change from year to year.
For example, if you live in an area extremely prone to wildfires, your insurance carrier may decide they do not want to offer fire coverage due to the high risk of your location.
However, being high risk means this type of coverage is necessary for you.
Looking into different insurance options each year ensures you are not losing the coverage you need and keeps you protected in the event of a disaster.
#3 – Re-shop to Find Insurance Bundles
Just as some insurance companies offer lower premiums than others, some also offer bundles. You can sometimes find huge savings by bundling multiple coverage options together — such as your home and auto insurance.
Though your premium may not seem lower when you bundle, you are still saving by paying for two coverage options rather than only one.
So while you may feel like you’re paying more, you are essentially eliminating one payment and adding it into another for a lower cost.
#4 – Make Sure Your Insurance Accounts for Upgrades
Your home may not stay in the same shape you originally purchased it in.
Perhaps you bought a fixer-upper that you have newly renovated. Or maybe you decided an addition was needed to give you more space.
Whatever the reason, as your home changes, so should your insurance coverage.
This is why it pays to re-shop each year. When you make changes that increase your home’s value, you’ll want your policy to reflect those upgrades. Otherwise, you may find yourself with inadequate coverage if something were to happen.
Exploring your options for home insurance to meet the new needs of your home can help you find the best coverage for the best price.
You may find your current coverage premium is much higher than others because of your home improvements.
#5 – Added Safety Might Call for Insurance Adjustments
Adding something to your home, such as a security system, can be an excellent way to keep yourself safe and protected.
You might think your insurance company will feel the same way.
While some may offer discounts for your newfound protection, not every insurance company provides the same savings and incentives.
Re-shopping for insurance can help you find companies that offer savings for things like security systems and other added protections, such as monitored fire alarms.
After spending so much on your new equipment, insurance savings will certainly help relieve some strain on your wallet.
#6 – Big Life Events Can Mean Insurance Changes
Life can come with significant changes.
Some may be planned, while others may be completely unexpected. Insurance companies will often adjust your rates based on big life events.
Getting married may provide you with savings from your insurance company.
Statistically, married people tend to file fewer claims than those who are single, meaning some insurance providers may be willing to offer a discount.
While not all offer these savings, shopping around can allow you to find a policy that could.
Another large life event is having a child.
When you welcome a new baby into your home, you may want to consider looking into your homeowners insurance. Babies require a lot, and your current policy may not cover these new items.
Children also become mobile and may start to cause a little trouble as they get older. It’s essential to check around for insurance coverage based on your current needs.
Life doesn’t stay the same, and neither should your insurance policy.
Re-Shopping for Home Insurance: Protecting Yourself and Saving Money
Homeowners insurance is not one-size-fits-all. Many factors go into finding the perfect coverage for your needs. And it’s essential to keep in mind that those needs will likely change over the years.
Because life doesn’t always stay the same, re-shopping for home insurance is worth it.
It allows you to ensure you have a policy that not only fits your needs but your budget as well.
Whether you’re looking for bundle savings or just experienced a major life event, looking for the right insurance coverage is never a bad idea.
Each year, look around at different providers and their coverage options. You may not find a better policy, but you may find one that’s just right for you.
Alexandra Arcand writes and researches for the insurance comparison site, ExpertInsuranceReviews.com.
She recently purchased her own fixer-upper home and knows the importance of re-shopping for home insurance as her needs change.