One thing we know for certain is that life changes. When you become a first-time homeowner, your financial and marital status may be one thing, but in 5 to 10 years that can quickly change. Buying a home is a financial commitment but also one that can grow into a family that you want to protect. Protecting that investment is essential, but as you undergo significant life changes, you need to consider whether your homeowners insurance protection needs adjusting.
Let’s assume you are 30 years old and are a first-time homeowner. Your original Alabama homeowners insurance policy is adequate to reflect your current square footage, your contents, and building value. However, 10 years down the road, you now have 2 children, a wife, some costly art collections, not to mention several renovations to your home.
One night while the family is asleep, a fire starts due to some faulty wiring and now your home has burned down. Unfortunately, you are informed your homeowners insurance is inadequate to cover the replacement costs and you will now be responsible for many costs out of your own pocket. This is a clear example of how important it is to routinely discuss with your local Alabama independent insurance agent any significant purchases, changes, renovations, or anything else that may affect your insurance protection.
Below are Some Typical Life Changes that May Require Insurance Coverage Revisions:
Home Remodels/Renovations- If you are doing extensive remodeling or home renovations, you need to discuss the details of this with your local Alabama independent insurance agent to ensure your homeowners protection reflects these changes.
Collections or Expensive Purchases– Investing in rare art collections, firearms, or stamp collections means you may need to change your homeowners coverage with an add-on endorsement to ensure if a covered loss occurs, you will have adequate insurance coverage. Keep in mind that purchasing expensive “toys” such as trampolines or a golf cart may also invoke the need for changes to your Alabama homeowners policy.
Marital Status- Once married you can guarantee there will be additional valuables coming into the home, such as additional furniture, electronic equipment, jewelry, etc. so that is a situation that may need some changes to the coverage or endorsements added.
Home Vacancy- If you plan to be gone from your home for an “extended time period”, you need to discuss any policy provisions, exclusions or conditions that may impact or even negate your homeowners insurance coverage. It is recommended you contact your local Alabama independent insurance agent for further information.
Home Rental- Renting out your home or using it as an Airbnb or VRBO may seem enticing in many ways, but keep in mind once you do this, your current homeowners insurance coverage may involve some conditions or exclusions of which you may not be aware. Consult your insurance agent for further details.
Getting a Dog- One of the most common types of homeowners claims results from dog bites that happen on your property, so if you acquire a dog or other exotic animal, please contact your Alabama insurance agent for assistance. Your liability insurance coverage amounts may need to be increased.
When Life Changes, so Might Your Homeowners Insurance Protection
With time, your life will undergo changes and when that happens, it is essential you stay on top of any changes you need to make to protect your loved ones, valuables, and your home. If you have experienced any substantial life changes or have any questions regarding your Alabama homeowners insurance coverage, call our office at 256-704-7400.