Homeowners should review their insurance annually, paying attention to factors including changes in the property's value, any remodeling or additions to the property, and changes to landscaping or other outdoor features, as Allstate explains. Valuable items kept within the home may also trigger a need for an insurance review.Continue Reading
When homeowners review their policies to make sure they meet their current needs, the primary factor to consider is the current value of the house. The policy should cover the current cost to rebuild the house if it were destroyed. This review should anticipate the full cost for replacing electrical, plumbing and heating infrastructure as well as any upgraded elements within the house, since policies typically replace elements of a home with elements of the same quality, according to Allstate. Replacement costs may also increase as elements of a home age.
Other factors to be covered in an annual insurance review include any improvements made that add value to the home, including remodeling and additions. If the homeowner operates a business from the home, additional insurance may be needed to cover equipment, inventory and business vehicles, as well as risks incurred if customers visit the home, per Wells Fargo. Addition of new security systems also affects insurance rates, often lowering them, and should be included in any insurance review.Learn more about Insurance