7 Times to Update Your Homeowners Insurance

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When you took out your mortgage loan, your lender required you to sign up for a homeowners insurance policy. Chances are, you haven't thought much about this policy since.

That might be a mistake. You should review your homeowners insurance policy whenever you make changes to both your home and your lifestyle. Doing so could save you money in the form of valuable discounts. (See also: 8 Surprising Things Covered by Homeowner's Insurance)

And not reviewing your insurance policy when you make these changes might leave you with inadequate financial protection should a fire or other disaster damage your home or a thief steal your valuables.

Here are the times when it's wise to review your homeowners insurance policy.

1. You've remodeled your home

If you've updated your 1970s-era kitchen, added a master-bedroom suite, or completed another large remodeling job, it's smart to call your homeowners insurance agent. That's because a major remodeling job could increase the value of your home. And this could make it more expensive to rebuild your home should disaster strike.

You might need additional coverage after a remodel to make sure that your policy will pay for the entire rebuild of your now more-valuable residence.

2. You've purchased big-ticket items

Your homeowners insurance policy will cover the loss of valuables inside your home if a thief steals them. But if you've recently purchased big-ticket items such as pricey artwork, jewelry, furs, or electronics, it's time, again, to call your insurance agent.

You'll want to make sure that you have enough insurance to cover the replacement value of these expensive items. If you don't update your insurance policy, you risk coming up short.

3. You've stopped smoking

Kicking the smoking habit is a smart move for your health. But it can also save you money in the form of lower homeowners insurance payments.

Most insurers will reduce the premiums of your policy — at least by a bit — if you don't smoke. Smokers are riskier to ensure. The chance of a fire damaging or destroying your home is higher if you smoke. If you've stopped, contact your insurer to see if you're eligible for a reduced premium.

4. You've retired

Retirement might come with an insurance discount, too. The Insurance Information Institute says that some companies offer discounts of as much as 10 percent to retirees who are at least 55 years old.

Why? Retired people usually spend more time at home. They're more likely, then, to spot the signs of a fire before it gets out of control. They're also less likely to be burglarized and have more time to spend on maintaining their homes. If you've left the working world, it's time to call your insurance agent.

5. You've added an alarm system

Adding an alarm system makes it less likely that a thief will break into your home. It can also bring you a lower homeowners insurance premium. After installing your system, call your homeowners insurance company. The Insurance Information Institute says that a new alarm system can usually save you about 5 percent in premiums each year.

6. You've added a swimming pool

Some changes can actually increase the cost of your homeowners insurance policy. One of these is adding a swimming pool. You'll be liable if someone is injured or drowns while using your swimming pool. This holds true even if the person using your pool didn't get your permission first. (See also: 9 Surprising Things Your Homeowners Insurance Doesn't Cover)

Insurance companies take on more risk when insuring homeowners with swimming pools, and will often increase their premiums.

You might be tempted to keep your swimming pool a secret from your insurer. Don't. If someone is injured in your pool and sues you, your insurance company won't pay out if you added the pool without its knowledge.

7. You've bought a dog

Your homeowners insurance policy will most likely cover you if your dog bites someone on your property. But, again, you'll have to inform your insurer about your new pet to guarantee this protection. Again, your rates might rise, but keeping your new pooch a secret could cost you in the long run. (See also: Beware: Your Insurance May Not Cover These 8 Losses)

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