Don’t Outgrow Your Home Insurance

Keeping your home insurance up to date can be quite tedious if you take into account all that entails. However, it could be the difference between being paid out too little when you eventually need to claim or getting what you require in order to replace or repair the contents around your home.

Home insurance should be an ever-evolving aspect of your life that grows and adjusts to the growth of your own life. If you understand this then the time it will take you to make these adjustments will prove to be time well spent and with the new insurance code of conduct that has been introduced, keeping your home insurance up to date is that much simpler.

Important Things To Consider

If you valued the contents of your home at a certain amount when getting your home insurance, you have to remember that this will be what you will get when you make a claim. However, chances are great that the contents of your house do not remain the same over the years as you tend to acquire more and get rid of others.

You also have to remember that the value of certain items decreases as time goes by but the cost of living increases. For instance, although the desk in your study will be worth a lot less than when you first purchased it, you will have to pay a lot more to replace it should the need arise.

It would therefore be a good idea to remember to insure items for the replacement value instead of the current value. If you were to be paid out for the current value of the desk you lost in a fire, you wouldn’t be able to get a new desk with that little money. That is why it is absolutely imperative to keep on top of things and make sure that your home insurance is always up to date where these things are concerned.

You should also make the effort to get the correct valuations for valuable things like jewellery, heirlooms and things like paintings and other works of art. These are items that don’t decrease in value and are also harder to replace. Get a professional to assign value to these items instead of making haphazard estimations.

It is for this reason that you should make the necessary adjustments to your home insurance at least once a year. Consider things like:

  • The rising cost of living and the state of the economy
  • Additional items that you’ve added to your home that increase the overall value of the insured contents
  • Items you have gotten rid of that need to be removed from the equation
  • The general increase in cost of replacement of contents like furniture and appliances

The point to this exercise is mainly to protect you so that you don’t end up with the added financial burden of having to struggle to replace and repair your life if you were to be the victim of theft, fire or even a natural disaster that obliterated your home and its contents.

When dealing with any one of the stressful situations described above, the last thing you need to worry about is your insurance and whether it provides adequate cover. Take the time to update your policy on a yearly basis and you will reap the rewards at the end of the day.