When Is the Best Time to Shop for a New Homeowners Insurance Policy?

Knowing when to shop for a new homeowners insurance policy has many advantages for property owners. Homeowners insurance covers damages and losses made to your property. If you are a Florida resident, hurricanes, floods, fire, mold, and roof leaks could lead to damages to your property. The number of policies you maintain with your insurance company depends on the value of the property. If you have multiple policies with the company, you may qualify for discounts and save on your insurance.

The Best Time to Shop for a New Homeowners Insurance Policy

As Soon as You Purchase the Property

As a new property owner, it is best to shop for a new homeowners insurance policy immediately after signing your contract. Typically, there is a period of time that it takes to fully close on your new property. You can use this time to shop for quotes and put the necessary policies in place. Depending on the policy you choose, the process to purchase a policy can take just a few minutes, and you will have homeowners insurance in less than three days.

Your Homeowners Insurance Renewal is Due

If the time to renew your policy is close, homeowners should review the policies and adjust where necessary. Renewal prevents coverage lapses which cause high premiums and, in the worst scenario, can leave you without any protection. Insurance companies send your renewal policies a month before the actual renewal kicks off for another year. You have ample time to look into new rates and coverages.

Appreciation in Property

The value of your property dictates the cost of insurance policies. If your value increases, for example, from $1 million to $1.5 million, it would behoove you to shop for a new homeowners insurance policy. As value increases, make sure your coverage is enough to cover any damages in your home. If you do not adjust your coverages to include the added value, then coverage will be limited. You will also get a lower premium rate from different policies and lower the total premiums paid annually.

Temporary or Permanent Changes in Occupancy

If a house is temporarily unoccupied, it is more prone to fire, water damage, or vandalism. These vulnerabilities are often not covered by your homeowners insurance and the coverage will be discontinued. Homeowners should speak to their insurance agent to explore the options for vacant homes.

When moving to a new state, your current homeowners insurance company may not be licensed to write a policy in your new area. It is best to shop for a new homeowner insurance company and give your property the protection it requires.

Additionally, if you sell a portion of your property, the value of the property covered under your policy decreases. The decrease in the asset will impact the insurance coverage, and you can save more if the policies are based on your specific needs.

Unfavorable Homeowners Insurance Rates

If you are not satisfied with your current rates, you have the right to switch. When the rates increase, you can switch to a new insurer whose rates are considerate and protect your home adequately.

Midterm Switch

There are several reasons that could make a homeowner want to transfer to a new homeowners insurance company. Here are a few actions that can lead to a bad reputation for an insurance company:

  • Poor customer service
  • Slow response to claims
  • Inadequate coverage on damages
  • Less inclusive policies.

If a midterm switch occurs, your premium will be updated to make a switch successful and a cancellation fee will be charged. You are then free to place the safety of your home in trustworthy hands with better services.

After Home Renovation

Renovating adds value to your home. For example, if you install a pool on your property, the need for liability coverage arises. If you created a home office, the office tools and equipment would need insurance coverage as they are also vulnerable to risks. Replacing your roof will also save you money with insurance agents. Shopping for new homeowners insurance ensures that your home has proper coverage as needed in its current state.

Increase in Events Leading to Risk

Risks are often unpredictable and preparing your home for the unknown can be a big challenge. Some events may include changes in climate and weather. For instance, an increase in rain can result in floods. If you are not properly insured against floods, the damages will not be covered.

While homeowners insurance is necessary, filing claims isn’t always easy, and the insurance adjuster may not your best interest in mind. At Exodus Public Adjusters, we fight for you to ensure that your claim is fully investigated and paid fairly. If you need help understanding your new or existing homeowners insurance policy, contact one of our experts today.

12 thoughts on “When Is the Best Time to Shop for a New Homeowners Insurance Policy?”

  1. This is a great list of triggers to bear in mind when shopping around for the best policy is concerned. I can’t understand how some people just don’t properly protect what is often their most valuable asset and only find out their mistakes when it is all too late.

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