In Focus – SCCCU Blog

You finally did it! You took the plunge and updated your outdated kitchen. Or maybe you finally completed that extra half bath off the study, or tacked on a killer deck to better survey your backyard kingdom. Now it’s time to see how these changes may have impacted your homeowners' insurance.

Depending on what you've done, you may no longer have the coverage you need. Here's what you need to know to determine if you need a new policy (or just a policy review) and how to go about getting the coverage you need.

When To Talk To Your Agent

Any major change to your home or living situation should prompt a conversation with your insurance provider. Here are some examples of when you should consider contacting your insurance agent:

• When you make any large improvements
• When you have any additions or updates to your home’s square footage
• If you put on a new roof
• If you add any additional structures to your property
• When you put in a pool
• If you make any smaller improvements that might raise your home’s value
• If you add or remove a fireplace or wood stove

Sometimes, You’ll Even Pay Less

Not everything you have done to your house will necessarily increase your need for more insurance coverage. Some things, like removing a fireplace or upgrading the wiring, plumbing, or even a new roof, can actually work in your favor and decrease your homeowners' insurance because your house will be deemed safer from fire, flood, and other possible disasters.

Something else that you may not realize can actually lower your insurance is adding a monitored alarm system. For some policies, having this added level of protection can help you save money — just check with your insurance provider.

Other Changes To Consider

There are also some life or lifestyle changes that can impact your coverage, such as welcoming a new baby or renting out a room in your home. Additionally, purchasing expensive items, such as jewelry, electronics, or artwork. Sometimes, certain dog breeds can impact your homeowners' insurance — especially those viewed as “dangerous” breeds. If something were to happen on your property and your insurance company doesn’t know your pet is part of the family, you may not be covered.

Schedule Regular Reviews

Yes, changes to your homeowners’ policy can potentially increase your insurance costs, but if you’re going to chat with your agent anyway, why not get a few additional quotes while you’re at it? No, shopping around for insurance isn’t fun, but saving money certainly is.

Ideally, you should review your homeowners policy once a year, whether or not you’ve made any big changes. Keep in mind that an improvement to your credit score can also reduce your premiums, depending on your credit score and policy, so keep an eye on that as well.

Ultimately, you should always aim to keep your policyholder informed about everything that’s going on in your life regarding your assets.