by Judy Dague, insurance agent - adapted from an article by Mary Jo at Progressive
As an insurance agent, it’s imperative to review a client’s insurance coverage on a regular basis. To plan this review well in advance of the insurance policy renewing so any changes can be made before you receive that policy in the mail. This helps to ensure that your current coverage is up to date and that you and your agent are on the same page with knowing approximate costs of repairing or rebuilding your home or replacing its contents at the time of a loss, even whether you have precious items that need specific endorsements for coverage. While this could lead to higher premiums, it helps you be more adequately insured with no gaps in your insurance coverage and less vulnerable to high out-of-pocket expenses should you encounter a loss in the near future.
Read on to learn the five factors that can affect your insurance premiums:
Home Remodeling
Home renovations and remodeling are an undeniably exciting time for any new homeowner determined to put their own personal touch on the design of their home. But homeowners often get wrapped up in the excitement of their home projects that they forget that remodeling can affect their homeowners insurance rates. If you are remodeling one or more rooms in your home or tackling any projects that will increase the value of your home, it’s important to talk to your insurance agent about adjusting the coverage on your home to include the cost of those improvements. While materials and construction costs may increase the home policy premiums, at least the coverage will be up to date on including that improvements you have made in there is a loss to your home in the near future.
Pools, Trampolines, and Other Backyard Entertainment
Pools, trampolines, and splash pads are known in the insurance industry as attractive nuisances. While a homeowner may love relaxing on the patio while their kids have fun swimming in the pool, or jumping on the trampoline, or even running around a splash pad; these items can cause your clients’ insurance premiums to increase due to the increased liability risk of guests getting injured. If you have added a pool, a trampoline, or something of the same nature, be sure to discuss with your agent the affect on your insurance coverage and how it can benefit you to take security measures to make your backyard area safe. Many homeowners fail to realize that they may be liable if someone is injured while using their pool, trampoline, or other backyard entertainment whether or not they gave that person permission.
Home Security
Have you updated your home to be smart? That fancy security camera system you bought on Black Friday for a deep discount, and the new deadbolt security lock system with a keypad entry that allows you in without your house key are just some of the features you should consider talking with your agent about; since this new security system could provide some substantial premium discounts. Anything beyond old locks to a more sophisticated monitoring system should be discussed with your insurance agent. Homeowners who have antiquated forms of home security are at an increased risk for a home invasion that results in a loss, increasing their insurance premium as a result. On the other hand, homeowners with a modern smart home security system may benefit from reduced premiums. If you’re looking to update and want to know what your insurance company would consider discount features before spending the money, contact your agent to find out.
Age of Your Home
The age of your home’s wiring, plumbing, and roof make the home susceptible to damage from the elements or internal deterioration. It’s important to keep in mind that as replacement costs increase over time, your home insurance policy will need to be adjusted to factor in the age of these areas of your home that experience wear and tear everyday. If you make updates to the wiring, plumbing, or replace your roof either completely or partially; let your insurance agent know of these changes since they can be factored into any future claim loss as a variable on a pay out.
Working From Home
As more people work remote jobs from home, some operating entire businesses out of their home. It’s important to let your insurance agent know, since you may need additional coverage for possessions like business vehicles, electronics, equipment, and inventory. Additional liability coverage is also necessary if customers will be on the premises. For homeowners who run their business out of their home, consider adding an endorsement to your homeowners policy, or purchase a business owners policy to keep any possible losses on the personal or business side separate. Your agent can advise why, and besides, a business owners policy may not be as expensive as you think for the benefit it gives.