When it comes to your homeowner’s insurance policy, too often we apply for and pay the premium and then that’s it; we don’t give it a second thought unless something happens. However, it’s important to call your insurance broker if certain situations arise, leading to a change in your underlying policy.
If you need to update your homeowner’s insurance policy for any reason including the following, contact your James Campbell Insurance broker today.
1. Renovation. Any kind of renovation that you complete on your home changes the dynamics of your homeowner’s insurance. One of the most common types of renovations that people do to their homes is finishing a previously unfinished basement, or at least part of it.
If you create a new room in your basement, add a section to your home, completely renovate the kitchen or bathroom, or do anything that alters the look or value of your home, it’s essential that you contact your insurance broker to update your policy. Your current policy is based on the previous layout and condition of your home and any renovations that are done may not be covered properly.
2. Name Change. There will be times when a name change on your Title of Property will be required. This could be for any number of reasons, but one of the most common is that one spouse is no longer listed on the title. Whether it’s due to divorce or other events, the person who is no longer financially liable or responsible for the home should be removed from the title.
As a result, your homeowner’s insurance policy will need to be updated. At times, this can be a difficult process, depending on the circumstances that led to the removal of the name from the property title, but if this occurs, be sure to contact your insurance broker to make the necessary updates to your policy.
3. Mortgage/Lien holder paid off. When you have a mortgage or a lien against your home, for whatever reason, that financial institution has a financial interest in your home. When a mortgage or lien is paid off, contact your insurance broker so that your policy will reflect this adjustment. If you don’t update your policy and a claim needs to be filed, any financial company listed on your insurance policy will have an automatic involvement in that claim, complicating the process.
There are plenty of reasons why you may need to update your current homeowner’s insurance policy. Too often, though, we either procrastinate on the issue or don’t realize that we need to update our policy. In order to fully protect yourself and your assets, be sure to contact your insurance broker to discuss any changes that could affect your policy.
If you’re unsure, contact your broker at James Campbell Insurance to find out. It’s better to be certain than find out when it’s too late.