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3 Scenarios When You Should Update Your Home Insurance

21 Jul by 5280 Insurance

You are likely now in a situation where your house has never been worth more, simply due to the rising prices of homes in your city. And if you are planning to add on or renovate a room, now is likely the time to do it—remember that renovation comes with its own set of risks that your current home insurance plan may not cover. 

This is precisely why you need to update your home insurance coverage.

1. Update Your Home Insurance to Cover Renovations

First, talk with your contractor about their materials management practices because they will greatly affect the amount of risk you’re exposed to. 

During renovations, contractors will order materials when they can, and you will be expected to make or rent space to store the materials. Ask your insurance agent about a temporary addition to your policy that covers the theft or loss of materials during the remodeling project.

Ask your contractor about their policy of covering fire, water, and chemical damage, especially if they are doing high-risk processes such as stripping paint with a heat gun. Talk to your insurance agent about whether or not the work that the contractor is doing means you need more insurance than usual. 

Confirm with your agent what risks are covered in your life insurance policy, and ensure they include workers or delivery people visiting your house. And once you are done with the project, talk to your agent about how to update your coverage to reflect your home’s new value.

2. Update Your Home Insurance During Annual Reviews

You can make some changes to your coverage without having to buy a new policy actively. You can take the time to talk to your agent and ensure you’re covered for benefits you may currently lack.

Some of these may include:

  • Additional living expenses: If you are a victim of a loss, this coverage will help you find temporary housing and pay for additional meals and other costs as you struggle through the aftermath of your loss.
  • Alternative accommodation: If you have a guest room that is seldom used, consider whether you should buy additional coverage to help with relocation if the need arises.
  • Home modification expenses: If you need to make major changes for health reasons, talk to your agent about whether you can add this to your current policy.
  • Reimbursement for lost deposits: More than one client had lost a deposit on a rental apartment when they needed to evacuate due to a significant storm. Ensure the agent knows you are worried about this and ask about the coverage you can buy to protect your financial interests.

3. Update Your Home Insurance to Guarantee Emergency Coverage

It’s time for another review of the risks surrounding your house. Natural disasters like wildfires, floods, and tornadoes can destroy your home, stranding your family in the wild. Meanwhile, climate change drives ever-changing risk assessments for wildfires and floods that can destroy your house and everything in it. 

Flood coverage is shifting rapidly. Don’t allow the decision on whether or not to get flood insurance to be a matter of whether or not you have a mortgage lender who requires it. Water damage is far from limited to floodplains. Water damage can result from various natural disasters, including leaks and breaks near your pipes or toilets, flooded basements, and sewer backups. These disasters can happen anywhere in the country.

Conclusion

Take action now to prevent a nightmare scenario. Talk with a local insurance agent and get a free quote to make changes to your home insurance plan. Be sure to ask every question concerning the process and your benefits to know you’re getting the best coverage possible.

5280 Insurance is an insurance company providing home, flood, auto, and more. We dedicate ourselves to providing you and your family with protection you can rely on while saving time and money. We understand insurance isn’t the most important thing on your mind with families of our own. That’s why we handle the details. If you need home insurance in Denver, we’ve got you covered! Get in touch by calling (888) 288-5280 today!

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