Welcome to Adriana's Insurance

4 Events Your Insurer Should Always Know About if You’re a Homeowner

18 Oct

4 Events Your Insurer Should Always Know About if You’re a Homeowner

Getting homeowners insurance isn’t just a matter of subscribing and putting your feet up. It’s also important to comply with the terms of your policy by making sure your records are up to date.  Any time a major life event happens, it’s advisable to let your insurer know immediately.  When it comes to homeowner’s insurance, it’s also necessary to keep your insurance company aware of major renovations or plans which impact your covered assets.

It Pays to Keep Your Affairs in Order:

Insurance Expert Kevin Mercadante explains that “Traditional insurance companies do business by keeping the money they don’t pay out in claims. This means whenever they have to process a claim, they stand to lose profit. This is why getting claims paid expeditiously is sometimes so hard.” The easiest way to avoid snarl-ups with the claims process is by making an effort to keep your insurer up to speed with all material information about your assets. Here are a few life-changes you should always tell your insurance company about:

1.    Marriage:

               Insurance companies need to know about weddings/marriage because such events impact ownership on the home.  Not only does marriage create an additional beneficiary, but it usually increases the property stored within a home.

2.    Fully-Paid Mortgages:

               Homeowners insurance rates are different depending on whether a policyholder is still transacting with a mortgage lender.  Chances are you’ll qualify for lower rates if you own your home outright.

3.    Changes to In-Built Electricals/Features:

               Home improvement has a huge impact on the book-value of a home.  If you’re going to carry out extensive renovations, make sure those changes include a formal valuation which you provide to your insurance company.

4.    Renting Out to Tenants:

               If you’re going to rent out a home which you own, the insurance company needs to know about the fact that you’re getting a tenant.  Acquiring tenants creates risks which may not be covered under a standard homeowner’s insurance policy.

Conclusion:

               Keeping your insurance company up to date is much more than a ceremonial formality.  It guarantees that your coverage will remain intact, while providing the maximum possible protection based on your specific policy.  Even though it’s easy to procrastinate or forget, don’t lose track of all the events that happen in relation to your assets.  Always keep good records so that you can provide your insurance company with accurate facts. For more information, visit our website or give us a call at 1-800-639-7654 to find out how Adriana’s Insurance Services can help you stay safe. We got you covered!