What You Need to Know About Changing Your Homeowners Policy

What You Need to Know About Changing Your Homeowners Policy

by | Aug 19, 2022 | Homeowners Insurance, Shopping Guide

So you’re midway through your homeowners policy’s term and you’ve just finished up a few home renovations. You couldn’t be happier with your home’s new facelift, but what if your current coverage isn’t enough to cover the upgrades in the event of an incident or theft? 

There are still another 6-7 months left on your homeowners policy and you start to consider if changing your policy, or maybe even your insurer, would be a smart move. Is changing my homeowners policy an option? Will it save me money or is the swap moot? The good news is that yes, you can change your homeowners policy at any given time. This is your right as a homeowner, but before you commit, take a moment to evaluate your situation.

Assess your homeowners policy

Take a deeper look at your current coverage and policy terms. Note the annual premium, coverage amounts, deductible, and effective dates. All of these details can be found on your homeowners policy declaration page, which is the first page of your insurance packet. Depending on your insurer, there may be specific stipulations that could directly affect your ability to opt out of your policy mid-term.  Avoid a lapse in your home’s insurance coverage, including related penalties or fines, by understanding your policy’s terms and conditions or consulting with your insurance agent.

Re-evaluate your coverage needs

If you are considering swapping out your current homeowners policy for a new one, chances are that you’ve undergone a few life changes. The home renovations, for one, increased the value of your home substantially. New flooring, shiny appliances, fresh paint—all beautiful upgrades that will likely cost a lot more to repair or replace. Not quite sure the exact value? Try reaching out to your insurance agent. They’ll help you to account for any changes in your home’s repair or replacement costs. Let them know that you’re considering a homeowners policy change. Your mortgage lender will need a copy of your new declarations page should you decide to switch. Those who own their homes outright do not have to notify anyone of this change and may do so at their own discretion. 

Shop around and compare rates

Opting to change your homeowners policy mid-term doesn’t necessarily mean that you have to stick with your current insurer. Maybe there’s a local insurance agency that offers coverage options that better suit your needs at more affordable price points.

A homeowners policy can differ by:

  • Policy limits in the amount of coverage provided
  • Exclusions of what constitutes as a valid claim
  • Deductibles which affect your insurance premiums
  • Discounts offered including policy bundle deals

When comparing rates and coverage options, get quotes on identical homeowners policies to ensure an accurate comparison. You may also want to consider looking into related rankings and reviews for each insurance agency. This will help you to weigh your options. The key is to find a homeowners policy that better suits your needs without breaking the bank.

how-to update your homeowners policy

Select a new homeowners policy

You’ve finally landed on your ideal homeowners policy—now what? The first order of business would be to align your new policy’s start date with your old policy’s end date. This date should be the same (i.e. new policy starts on October 1 and the old policy ends on October 1). Differing dates between your old and new homeowners policies could cause coverage to lapse and create a financial burden. Avoid this by going over the start and end dates to ensure that they are timed accordingly.

You should also discuss possible discounts or policy bundle deals with your new insurance agent. Many insurance carriers offer reduced premiums for those who bundle their home and auto insurance. If you are active duty military or a government employee, you may qualify for a special discounted price on your selected coverage. Ask your insurer to understand your savings qualifications.

Take away

Changing your homeowners policy mid-term can seem daunting, but it doesn’t have to be. Downey Insurance Group partners with a wide arrange of insurance carriers. This makes finding your home’s best-fit coverage quick and simple. Our independent insurance agents will assist you in changing your homeowners policy mid-term by helping you to assess your current coverage and compare the appropriate policies. We are with you from start to finish.

Contact us today and see if switching homeowners policy mid-term is right for you.

Why Homeowners Insurance is Better with an Independent Agent

Why Homeowners Insurance is Better with an Independent Agent

by | Apr 7, 2022 | Blog, Homeowners Insurance

The shifting U.S. housing market has introduced many first-time homebuyers, tasking each with choosing the right homeowners insurance policy. What should be a huge milestone in one’s life becomes an overwhelming decision. Insurer options are ten-fold. The cost of each policy differs. What’s covered and what’s not? These are all factors weighing heavily on the first-time homebuyer’s mind when seeking a homeowners insurance policy that fits their needs.

Which insurer is the best fit?

Determining which insurer is the best fit depends on your financial state and homeowner needs. This is why shopping around during the early stages of homeownership is key. Start by obtaining at least three to five quotes. This should give you at least three different homeowner indications. 

Be sure to stick to one type of policy during your initial inquiry. You’ll get the best possibility of obtaining the best coverage at the most affordable price while comparing each insurer.

How much will a good homeowners insurance policy cost?

The cost of homeowners insurance for a first-time homebuyer depends on the property location, amount of coverage needed, and the homebuyer’s insurance score—this includes prior losses. 

To accurately assess the appropriate coverage for your home, it’s best to talk to your insurance provider. They are the best go-to when figuring out the total cost of replacing your home and what policy would best fit should the issue arise. Although there are several forms of homeowners insurance, the most common is the HO-3 policy which covers damage to your owner-occupied home and belongings. In order to collect 100% of damages, in the event of a loss, your home must be insured to at least 80% of its replacement cost. 

This means that the homeowner will be financially responsible for the rest. To avoid unexpected repair costs, try working with an independent insurance agent. They’ll help determine your new home’s replacement cost and find the right coverage to meet your homeowners insurance needs.

What will homeowners insurance cover?

Like each homeowner, each insurer is different and provides different speculations within their homeowners insurance policies. Be sure to check for any exclusions in policies.

This will give you an idea of the types of damages an insurer won’t cover. Knowing what’s covered and what’s not under your insurance policy is critical for any homeowner. Common types of damages not covered include those resulting from natural disasters. If you’d like any of the listed exclusions included, an insurer will be able to customize your home’s insurance policy by adding additional coverage to meet your needs.

A typical coverage package for MA and New England homeowners insurance includes:

  • Protection for the physical structure of your home and its contents
  • Replacement costs coverage vs actual cash value claim settlements
  • Personal liability and additional living expenses coverage

Additional coverage options can add an extra layer of security and help to offset various unexpected costs. Flood insurance, earthquake insurance, and animal liability are just some of the many add-on insurances available to homeowners.

Takeaway

Compare policy premiums, coverage, and company reviews. Homeowners insurance is not one-size-fits-all and will differ for each homebuyer. At Downey Insurance Group, we aim to create custom, top-quality insurance policies that reflect each homeowner’s distinct needs.

Contact us today and find the homeowners insurance that’s right for you. As a first-time homebuyer navigating the future’s uncertainty, you deserve the best possible coverage.