Home insurance renewal is when an insurance policy is about to end and the policy owner is allowed to renew it. While the homeowner has the choice to just renew it, now is a good time to make any necessary changes and even shop around for better rates. The insurance provider will typically inform the policy owner 30 days before their policy’s expiration.
This is the perfect time to assess your current insurance needs and shop around. Remember, you don’t have to change your current policy if you’re happy with it. However, your insurer may make some changes to your policy automatically that you’ll want to look over.
In addition, your insurer doesn’t have to renew your policy if they deem you high risk. For instance, if you filed too many claims or live in a high-risk fire or flood area. However, they must notify you 45 to 60 days before your policy’s expiration.
In this article, we’re going to go over some tips for renewing your home insurance and how to get the best policy at a reasonable rate.
Home Insurance Renewal Tips
Did Your Rates Change?
Always check for changes with your policy’s rates. Typically, your provider will inform you if there’s an increase or decrease in your current rates beforehand. If you notice an increase in your premiums and you aren’t sure why then reach out to your provider.
If you’re unhappy with your current rates then now is the time to shop around. It’s recommended to get at least a couple of quotes from other providers every year. You never know, you could be missing out on saving some money!
The following are some of the main reasons your provider may have increased your rates:
You Added More Coverage
The amount of coverage you need may increase year to year. The coverage you need for your home is based on its current rebuild price. Typically, the cost to rebuild your home will go up every year.
Also, if you purchased additional coverage for your home, this could be the reason why your premium increased.
You Have an Older Home in Need of Upgrades
Insurance providers usually charge more if you own an older home and haven’t done any updates. This is because these houses tend to have outdated features that could pose a safety risk. For example, you have an old roof, exposed/outdated wiring, or bad plumbing.
Your Credit Score Went Down
Homeowners with poor credit scores may be charged more for their insurance. This is because a bad credit score indicates to your insurance company that you’re late paying your bills. Therefore, you’ll be deemed high-risk.
Make Updates to Your Policy if Needed
Various expensive purchases like a new computer, engagement ring, art, or handbags can affect the amount of coverage you need. Similarly, starting a new business and sending a child off to college creates new risks in the eyes of your insurer.
Therefore, now is the best time to ask about various home insurance discounts. You can also do this by increasing your out-of-pocket deductible. However, keep in mind you want to pick an amount you’re comfortable paying in the event of a claim.
Double Check for Any Coverage Changes Made by Your Insurance Company
You should always check to see if your provider made any changes to your coverage or exclusions. Such as, they could’ve added coverage to your policy at no additional cost or excluded certain kinds of damage.
If there are any changes in your policy, you’ll want to know so you’re aware of what’s covered and what’s not.
Bottom Line
A home insurance renewal is the best time to reconsider your coverage amounts and insurance provider. You should always shop around, make changes to your policy, and check for rate increases, coverage changes, and new exclusions. Also, don’t forget to ask about homeowners insurance discounts.
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