Owning a house and having a homeowner's insurance policy is the perfect marriage. It's so comforting to know that if something were to happen to what is likely your primary investment, you have the financial backing in place to take care of it. Because so many things are now automated, you may have your insurance payment set to automatically be deducted from your checking account each year. While this is certainly convenient, it can also cause you to forget that you should take a few minutes to review your policy on at least an annual basis. Read the information below to find out why it's very important that you carve out some time to review your homeowner's policy each year.
You May Have Made Some Money-Saving Changes
Your premium is calculated based on many different pieces of criteria. Things like the location of your house is certainly a huge chunk of it, but there are other factors as well. If you've bumped up the safety features in your home, you could be overpaying. Those little upgrades that you might not think affect your premium could actually help you save quite a bit of cash.
For example, when you moved into your home you might not have had an alarm system. However, you've since added a security system that not only has an alarm, but that also features cameras which allow for remote viewing. Your insurer may offer a discount for policyholders who have these kinds of systems. The only way you're going to know is if you take stock of the safety features you add to your home each year and then give your insurance company a call with the updates.
A Review Helps You Avoid Being Underinsured
It's also possible that you may have acquired some things throughout the year that fall outside of the coverage that you have on your current policy. This could be anything from a family heirloom that was left to you by a relative who was recently deceased or a ring given to you by someone you care about. Depending upon the terms of your policy, you might need to add on a rider if you want these items protected. You wouldn't want to wait until you experience a loss, only to find that the insurance won't take care of the claim.
Reviewing your policy is a great way for you to protect your bottom line. Pull out that policy and give it a yearly audit. It could definitely be of benefit to you.