Many people think that once they buy a home and purchase homeowner’s insurance their job is done. That’s not the case at all. Similar to life-changing occurrences affecting your medical coverage, there are also common-occurring life events that may require a review of, or an update to, your existing policy. Here are 5 of the most common life events that may require a new home insurance policy.
Purchasing a new home
It may seem obvious, but when you purchase a new home it’s a good idea to review your existing policy and determine what coverages your new property will require. Keep in mind, mortgage lenders may stipulate that you carry certain protection based on the amount of your loan. Whether the new home is going to be used as your primary residence or as an investment property will determine the specific requirements for an insurance policy.
If you decide to rent out a portion of your home, such as a basement apartment or a guest house, you should research what protections you may need to add to your existing property and if you need separate insurance coverage for the rental area. This also applies to remodeling by adding an attached room to the home’s main structure, adding a detached garage or shed. Homeowners should always check to see they have adequate coverage for all changes.
Purchasing high-value items
If you finally got the diamond wedding set you always wanted, or you purchased other expensive jewelry, artwork, instruments, etc., it’s time to review your existing homeowners policy and to make sure they are properly covered in the event of a loss.
