How Often Should You Update Your Home Insurance Policy?

Most homeowners in Rochester, MN, and other parts of America take home insurance when buying their home with a mortgage. However, once they get their policy in place, they never give it a second thought until disaster strikes. 

Home insurance isn’t a “buy and forget” investment. You should update it to cover your current situation. Otherwise, you might find yourself incurring significant out-of-pocket expenses when disaster strikes. Are you unsure when you should be updating your home insurance policy? Hang on as Safechoice Insurance Agency shares tips. 

When you make significant improvements

Insurance experts advise that you should adjust your home insurance plan every time you make significant additions to your house. An added kitchen? An enhanced bathroom? Your home insurance should reflect these changes since they add to the value of your home. In case of a disaster, your house would be expensive to rebuild due to these additions. Without adequate home insurance, you may have to fork out the repairs of your additions from your pocket.

When your home value increases

If you insured your home when it cost, let say, $550,000, and now it’s valued at $1M, it’s a smart choice to adjust your home insurance plan since the cost of rebuilding your house today will have increased. While you won’t use the $1M figure, you should adjust your home’s value to what it would cost if it were rebuilt from scratch today. 

When you make alterations that increase your liability

Have you added an in-ground swimming pool? Have you added a second floor to your home? These home improvements increase the chances of a guest in your home suffering injuries. And because you might be liable for injuries they suffer when they are in your house, you need to boost your liability coverage to cover medical expenses and possible legal suits.

Need more information on home insurance? Would you like to know whether your home insurance covers you sufficiently? Please contact Safechoice Insurance Agency of Rochester, MN, for more home insurance tips.