When was the last time you thought about your home insurance? If you’re like most people, you probably haven’t revisited your policy since you first bought it. It’s an oversight, though, that can cost you. Here are three scenarios that should prompt an insurance review.

Your Rebuild Costs Have Changed
Any time there’s a change in the labor and material costs of rebuilding your home, it’s a good idea to consider a review. A renovation is one such scenario. Another is when there’s a general uptick in construction costs. Of course, those can spike after a natural disaster, but you can buy an extended-coverage rider now that’ll boost your replacement value by up to 30 percent.

You Made a Big Purchase
New jewelry, art and other purchases may be covered by your policy but only in certain circumstances or up to a certain dollar limit. In this event, you can either increase your personal property limits or get specific coverage for the new item (called “scheduling”). This is also the time to decide between actual cash value coverage, which reimburses you for an item’s depreciated value, or replacement cost coverage, which compensates you for the full cost of a replacement right now.

Your Risks Have Increased
A new pool or trampoline might make you the neighborhood hero, but it can also increase the risk of injuries on your property. If you’re planning such a purchase, check whether your policy protects you against the new danger with enough liability protection, which would help with medical or legal costs if someone were to get hurt.

By and large, it’s never a bad time to make sure your existing insurance coverage matches up with your current needs.


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