If you own your own home, you know you need insurance coverage. But you might not know that those insurance needs can change from time to time. If you're coming up on the end of your policy period, it's time to assess your insurance needs. This is the perfect time to make sure your current policy is the right fit. Here are just four of the reasons why you need to assess your home insurance policy.
You've Installed a Security System
If you've recently installed a home security system, talk to your insurance provider. The addition of a home security system could bring your policy rates down. This is especially true if you didn't have any home security system when you purchased your policy. Insurance companies often provide deep discounts for security systems. That's because losses arising from theft are less likely when homes are protected by security systems. Before you renew your home insurance policy this year, let your agent know about the new security system.
You've Changed Professions
If you've recently changed professions, it's a good idea to talk to your insurance agent. You might not know this, but your profession plays an important role in how much you pay for your home insurance. For instance, insurance companies will often offer discounts for members of the military or for teachers and first responders. But if you've opened a home-based business, you may see your insurance rates go up. That's because you'll also need coverage for your business. To make sure you're paying the right rates, and that you have the coverage you need, talk to your insurance agent about career changes.
You Need Different Coverage
If your insurance needs have changed since you last updated your insurance coverage, it's time to take a closer look at your policy. This is especially important if you live in a high-risk area, such as flood zones or earthquake regions. Most home insurance policies don't provide automatic coverage for floods or earthquake damage. For that type of coverage, you need to purchase additional coverage. If you need coverage for these types of emergencies, now's the time to add them.
Your Insurance Score has Changed
Finally, when you buy home insurance, companies check your credit score. But they also check your insurance score. Insurance companies use this score to determine how much you should pay for your coverage. Some factors that contribute to your insurance score include previous claims, condition of your home, and safety features. If your insurance score has changed since you bought your last policy, don't sign your new policy until your premium has been adjusted.
For more information on homeowners insurance plans, contact a company such as ALTRE Insurance Agency Inc.