It's strongly recommended that you review your homeowners insurance policy at least once a year. According to Forbes, 72% of homeowners currently don't understand how liability insurance works within a home insurance policy. By reviewing your policy regularly, you'll have the ability to ensure your policy still meets your needs. Here are a few of the key reasons why you should review your homeowners insurance policy annually.

1. The Values of Items Change

One of the top reasons why you want to review your homeowners insurance policy at least once a year is because items have a tendency to fluctuate in value. The amount that it would cost to repair your home if it were involved in a fire is significantly higher today than it was five years ago due to inflation. As such, you may need more coverage to ensure your home is fully protected. Additionally, the value of the items you have stored in your home can change.

2. You Should Cover Any Changes to Your Home

Both the minor and major changes that you make to your home can affect the value of the home and the cost to repair the damage that may happen in your home. For example, if you upgrade your old porcelain tile bathroom countertops to natural stone ones, the cost to repair or replace those new countertops would be higher. By reviewing your policy, you can include any changes that have been made to your home.

3. You May Qualify for New Discounts

The final reason you should review your homeowners insurance policy from year to year is to find out if you qualify for any new discounts. You may not have qualified for discounts in the past, but you may find that you now qualify as a long-term customer or for not filing a claim for a period of time. Always be on the lookout for deals you're missing out on!

One of the biggest misconceptions about homeowners insurance is thinking that just because a policy meets your needs for one year, it'll continue to meet your needs every year moving forward. The value of your home, the value of the property stored inside, and the amount of liability coverage you need can change over time. By taking the time to review your policy, you can ensure that the limits and coverage continue to meet your needs and that you're paying a fair price for insurance. If you're ready to start comparing pricing or policies, contact our team at T.R. Williams Insurance Agency to learn more about our offerings.