Why You Should Review Your Homeowners Insurance at the End of the Year

A couple reviewing their homeowners insurance policy.
As the year winds down, a lot is going on for many homeowners. The holidays alone are a mad rush for most families, but this can also be a time of reflection. Setting new goals for the new year is a great way to self-audit and adjust. A lot can happen in a year and reassessing your homeowners insurance needs can help you stay better protected and save money in the process. Your home insurance policy may increase if unchecked and there are many reasons why. Let’s take a closer look at some of the things homeowners should consider for their policy needs.

Changes in Your Lifestyle or Home

As the cliche goes, the only constant is change, and over a year, many homeowners may find themselves living a different lifestyle than before. This too can affect your homeowners insurance policy. Examples include:

  • Home improvements may require additional coverage.
  • A shift in working more at home rather than your office.
  • An increase in your home’s property value.
  • A rise in the value of your personal possessions.
  • Adding a pet of a particular breed to your home may be considered a higher risk for some insurance providers.
  • New features to your home such as trampolines and pools.
  • An increase in safety features including carbon monoxide detectors or a security system.

Depending on how things have changed will depend on the effect on your homeowners insurance policy. Failure to disclose certain changes such as high-risk additions like inground pools can even void your home insurance coverage. Be sure to speak with your insurance provider when making major changes. Going over the various changes your home has experienced at the end of the year can also help you and your agent discuss the adjustments you’ll need to remain covered for the following year.

Note: One of the best features of your homeowners insurance policy comes from the liability protection it provides against medical and legal expenses. Homeowners who have a sizable amount of assets or income, however, may find themselves the target of a lawsuit which a standard home insurance policy may not fully cover. If you’ve found yourself with a sizable increase financially, you may also want to ask your agent about an umbrella insurance policy. Adding one or reviewing an existing policy can help you stay protected from liability issues. Through bundling, you’ll be able to receive protection from both your home coverage and umbrella policy for a lower price.

Consider the Rising Cost of Building a Home

Homeowners insurance policies have limits. These limits may need to increase from time to time based on a myriad of factors including the cost of rebuilding your home after a major loss. If you are left with too little coverage, you’ll be paying for these repairs out of pocket. You’ll also endure the headache of dealing with a policy that doesn’t cover you the way you thought after a loss.

Building materials and labor continue to rise to make it more costly to rebuild or repair your home. Minor repairs may not push your claim over the edge, but for serious perils such as a major house fire, you may find that your coverage is insufficient without reviewing it annually. Speaking with your agent can help you determine the right amount of coverage for your needs.

Natural Disasters Will Affect Your Home Insurance Rate

Insurance companies use a variety of measures to calculate risks which ultimately determine the amount homeowners pay for their premiums. Natural disasters play a big role in these risk assessments. Expensive hail events and harsh winter seasons are a few examples of how disasters can cost you more as insurance companies raise their rates.

Texas is a beautiful state but it is also home to a variety of natural disasters including tropical storms, hurricanes, hailstorms, tornadoes, and flash floods. Be aware of the weather trends in your area and speak with an agent about the potential rate increases you may experience due to natural disasters.

Save on Homeowners Insurance While Staying Prepared for Next Year

Homeowners shouldn’t have to choose between the right coverages and saving money. Here at Freedom Insurance Group, you don’t have to. We find you the right homeowners insurance policies for your needs at the best price possible. You’ll have your coverage compared among our 25+ top-rated insurance partners to find the best price and discounts available. Get a free home insurance quote and learn more about how our average customer saves 40% on their coverage today!

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769


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