Why Reviewing and Updating Home Insurance Policies Each Year Is Crucial

Your home can be affected by many unexpected incidents, but long-term and gradual changes may also need to be considered. Your home is part of a community and economy, making it subject to changes caused by trends and events that might not seem to have a direct impact. Additionally, your personal circumstances could change suddenly. Given these inherent possibilities, understanding insurance adjustments is critical.

Why Are Annual Reassessments Necessary?

Even if you’ve been pleased with your current coverage and have had no issues with your carrier, it’s generally advisable to at least reconsider your options on an annual basis or whenever your policy comes up for renewal. This is because outside forces, such as the following, may impact your home insurance:

• Natural disasters—If you’re in an area that has been impacted by severe weather or other disasters, such as wildfires and severe storms, your insurer may raise your rates or even pull out of the local market altogether. Shopping around with various carriers can help you procure and maintain suitable coverage at an ideal rate.

• Market conditions—The home insurance market is part of the greater economy and may be influenced as such. Inflation, rising costs of living and supply chains can all impact your home insurance coverage rates, potentially requiring you to adjust your policy, such as by increasing its deductible to maintain lower premiums.

• Personal circumstances—Home insurance typically includes coverage for structural elements, liabilities and personal belongings. If you’ve renovated, added on to or otherwise improved your home, your coverage needs have likely changed. Similarly, adding a member to your household, such as a spouse or child, can increase your liability risks and major purchases can also demand enhanced coverage.

We’re Here to Help

Contact Goal Insurance in Taylorsville, Utah, today to learn more about home insurance and the importance of regularly revisiting your coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.