FRIDAY, OCTOBER 30, 2020
Each year in North Carolina, insurance companies write homeowners insurance worth an average of $2.8 billion. To the average homeowner, these policies cost approximately $1,100 per year. However, your policy needs and your premiums will vary considerably based on multiple factors. You don’t want to pay that much money and not reap the appropriate benefits.
That’s why it is imperative that you keep a close eye on your existing coverage to know whether it still adequately meets your needs. At times, you will need to increase your homeowners insurance, not for the added cost, but for the added benefits. Having the wrong coverage means you could suffer a significant financial loss that additional benefits might have offered you. Consider some of the times most critical when you need to increase your policy.
You Make Additions to Your Home
If you plan to build a new addition onto your home, you will increase your property value. Therefore, the limits of your current structure coverage might no longer adequately cover the home. You will likely need to increase your coverage limits to adequately address this new property value.
Please note, most homeowners insurance policies will pay you for the home’s replacement cost value. This is the cost necessary to rebuild your home at today’s prices. This is not necessarily the value you paid to buy the home. So, if you have noticed that construction prices in your area have increased in the last few years, then you will likely need to increase your dwelling insurance limits.
You Accumulate New Liabilities on the Property
If you put in a pool or get a pet in your home, then your liability risks will increase on the property. Someone might fall in a pool, or a pet might bite them unexpectedly. Therefore, they face a significantly higher liability risk by visiting your home.
Therefore, you should increase your liability insurance to offer you a higher degree of coverage. It is your liability insurance that will pay third parties when they sustain injuries or property damage that is your fault.
You Buy a New, Expensive Possession
Homeowners insurance policies frequently limit how much they will pay for special or expensive items, such as jewelry, art or musical instruments. However, since these items are probably worth a lot to you, you will want to adequately insure them. To do so, you might need to buy a scheduled item endorsement on the item. You can add this coverage into your homeowners policy to adequately insure these items for the appropriate value.
There is never a bad time to call your insurer about the benefits of increasing your homeowners insurance. At times, you might find it just the right solution to getting coverage where you didn’t realize none existed.
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