Looking into new homeowners insurance isn’t just something you should consider when buying a home. There are several other instances where it makes sense to shop around for new coverage to ensure you’re getting the best deal and adequate protection for your needs. Here are key times when it’s a good idea to consider looking into new homeowners insurance:
1. Renewal Time
Each year, before your current policy renews, is an ideal time to review your coverage and compare quotes from other insurers. Insurance companies often adjust rates annually, so you might find a better deal or discover that your current insurer is no longer the most cost-effective option.
2. After Significant Home Improvements
If you’ve made significant improvements to your home, such as a kitchen remodel, adding a room, or upgrading roofing materials, your home’s value and the cost to rebuild may have changed. You’ll want to ensure your coverage amounts reflect these improvements so you’re fully protected.
3. When You’ve Made Significant Purchases
If you’ve acquired valuable items like jewelry, art, or high-end electronics, you may need additional coverage beyond what your standard policy offers. Reviewing your policy can help you decide if you need to increase your personal property coverage or add specific riders.
4. After Major Life Changes
Major life events such as marriage, divorce, or children moving out can affect your insurance needs. For instance, you might need to update beneficiaries, adjust coverage amounts, or find a policy that offers better rates based on your new situation.
5. If Your Risk Profile Changes
Installing a security system, updating your home’s electrical or plumbing systems, or making changes that reduce your home’s risk of damage could qualify you for lower insurance premiums. Conversely, adding a pool or trampoline might increase your liability risk and necessitate a closer look at your coverage.
6. Changes in Your Neighborhood
Significant changes in your neighborhood, such as increased crime rates or new fire protection services, can affect your insurance premiums. It’s wise to see if these changes have impacted your rates and shop around accordingly.
7. If You Experience Poor Customer Service
If you’re dissatisfied with your current insurer’s customer service, whether it’s difficulty filing claims, slow response times, or unsatisfactory resolutions, it might be time to look for a new provider.
8. Following Significant Price Increases
If your insurer raises your premiums significantly without a clear reason (e.g., no recent claims or risk changes on your end), it’s a good opportunity to shop around for better rates.
9. Availability of New Discounts
Other insurers may offer new or different discounts that your current insurer doesn’t—such as discounts for being claim-free, bundling policies, or for energy-efficient home upgrades.
10. Regulatory or Market Changes
Insurance markets can fluctuate due to changes in state regulations or shifts in the insurance industry. These changes can sometimes lead to more competitive rates or better coverage options becoming available.
Regularly reviewing your homeowners insurance ensures that your coverage meets your current needs and that you’re getting the best value for your money. It’s a good habit to get quotes from several insurers at these key times to ensure your home is adequately protected at the best possible price.