Buying a home insurance policies is much like buying a suit. You can buy one off the shelf that will fit most people, or you can have one custom-made that fits you perfectly.
If your home insurance policy is off the shelf, there will be times when you need to look at it to make sure you are covered for any eventuality. You might get a great insurance deal at the start, but there is a host of things that can change it to being next to useless. Here are three signs you need to check your policy.
- You get a dog
Insurance policies are dictated by many things. There are hundreds of minor factors that will affect your deductible and coverage. So, it should be of no surprise that when you get a dog, it could affect your insurance policy.
Many people will need to pay extra money each year when they get a dog, even if it is well trained. Breeds of dog that are marked as aggressive will attract further costs. You will also need to sign a waiver to limit the insurance company’s legal liability in the event your dog bites someone.
It is necessary to inform your insurance company the very second you get a dog. If not, any insurance claim you make could be made null and void. And, as anyone with a zestful puppy will confirm, that could be an expensive mistake.
- You buy new stuff
Most homeowners insurance policies will come with a standard contents coverage. But it’s important to be aware that this may not cover everything in your home.
If you buy expensive items such as a new stereo system or television, you have to make sure whether or not you need to buy extra coverage. This could come in the form of contents insurance.
Should something happen to your new high ticket items and you make a claim, you could be left with the majority of the expenses. There will be a crossover point when contents insurance will be a necessity – make sure you know where that line is.
- You build a hot tub
When a child wanders into your garden and has an accident, you could be responsible. This is the case even if they just walk in from the street uninvited. It’s called the ‘attractive nuisance doctrine.’
An attractive nuisance is something that looks tremendous fun to a child but has dangers they don’t know about. It could be a hot tub, a pool or an open outside fireplace, for example. While most insurance policies will cover you for accidents such as these, you may have to up your premium.
Don’t ignore this. Even if you think it is unfair, the facts are that drowning is the second largest cause of death in children under 14. You can make sure your hot tub or pool is super secure, but you cannot guarantee that a child won’t get in there at any time. And if they do, you will be liable if you haven’t got the right insurance policy.
There are many other reasons to keep tabs on your home insurance. But these three are perhaps the most surprising, as they are things that many people will do without thinking about the insurance implications. Hopefully, you will remember after reading this!