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How Often Should You Change Your Home Insurance Policy? Find Out

By on October 7, 2020 0 630 Views

Homeowners insurance is something that people forget about soon after they get their policy. But, these policies are not cheap and the cost can go up to thousands of dollars, based on where you reside. Given that this is a recurring expense that you cannot avoid, it’s important that you update your policy from time to time. 

Insurance experts recommend changing your policy at least once every year. Since the annual premium for most policies increases by about 10% during renewal, there’s a good chance you’ll be able to find a new policy at a lower rate, provided you shop around and compare the plans offered by different companies. If your rates haven’t increased by much, it still makes sense to shop around for home insurance policies so you know if you are missing out on a good deal with a different insurance firm. 

Why It’s Important to Shop Around for Home Insurance Annually

Homeowners insurance companies often re-evaluate their rates and change the pricing of their policies on a yearly basis. Given that the insurance industry in the country has been operating with tight margins, your premiums will likely be affected. 

So, for instance, if you are currently paying $1,000 for your policy annually, a 10% increase would mean that your premium would increase to $1,100 – and it doesn’t just stop there since it will increase again in the following year. This is why it’s important to compare policies offered by different companies. Buying a lower-priced policy could help you save hundreds of dollars every year. 

What’s the Best Way to Shop Around for Policies?

When you start looking for homeowners insurance policies, you’ll need to ensure you are evaluating and reviewing the coverage and premiums of policies offered by both small and large companies. You can do this by doing your research or getting in touch with an independent agent who works with different insurance firms. If you decide to do the latter, make sure to find out how the broker is going to be compensated – if the individual is receiving commission from a particular company, it’s likely they will upsell the policy from that company even if it offers subpar coverage. 

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