Your home is likely one of your most significant investments, and it’s not just about the walls and roof. From renovations to landscaping, the changes you make over time can impact your property’s value and your insurance needs. That’s why it’s essential to review your property insurance every year to ensure you’re adequately covered.
Property insurance, also known as building insurance, protects the physical structure of your home, including walls, roofs and permanent fixtures like pools or fences. It’s designed to restore your property if it’s damaged, whether from fire, storms, or other events. However, this coverage doesn’t extend to personal belongings—that’s where home contents insurance comes in.
So why review your insurance policy annually? As you make updates or add new features, like a renovated kitchen or a new patio, your property’s replacement value can change. If these changes aren’t accounted for in your insurance policy, you risk being underinsured, which means you may not receive enough compensation to cover repairs or rebuilding costs in the event of damage.
There are specific scenarios that call for an insurance review. Major renovations, new structures like a shed or gazebo, or even a rental unit on your property can affect your coverage needs. Additionally, if your home is insured for market value instead of replacement cost, you could be paying more than necessary.
To avoid gaps in coverage, update your insurer about changes to your property and ensure your policy reflects the current value of your home. This simple annual check-up can save you from costly surprises later on, ensuring your home remains a safe and protected place for years to come.