A home changes over time and so should how you insure it. Here are some considerations for keeping your policy up to date:
* Add coverage whenever improvements enhance the value of your home.
* Similarly, buying expensive furniture, electronics, etc., might require more coverage.
* Keep in mind that many states will hold you legally responsible for the actions of anyone who drinks in your home and subsequently has an accident. Check that your homeowner’s policy protects you against lawsuits from such incidents.
* If you have items such as a trampoline or a pool in your backyard, you may need an excess liability (“umbrella”) policy that will protect you if someone is injured there.
* Certain types of valuables–jewelry, family heirlooms, antiques, art–are typically not covered by a basic homeowner’s policy. You’ll need to add a “floater” or “rider” to your policy to cover them.
Also make sure you know what your policy does and doesn’t cover. For example, many people incorrectly believe flood damages would be covered by a standard homeowner’s insurance policy.