For many of us, our homes are our most valuable asset. Home insurance is designed to protect this asset and provide peace of mind, but are you truly covered if the unexpected happens? Homeowners can sometimes find that their coverage falls short when they need it most, leaving them responsible for out-of-pocket costs. At BlackArrow Insurance, we believe it’s essential to regularly assess your policy to ensure it keeps pace with your home’s value, personal belongings, and lifestyle changes. Here are some key signs that you may need to increase your home insurance coverage.
If you’ve recently renovated or added square footage to your home—such as remodeling your kitchen, adding a new room, or updating your bathroom—your insurance coverage should reflect the updated replacement cost of your home. Higher-end materials, fixtures, and additions increase your home's overall value and would cost more to rebuild in the event of a loss.
The real estate market can fluctuate, and if property values in your area have risen significantly, your coverage should be adjusted to account for the increased replacement cost. An outdated policy may leave you underinsured, as rebuilding costs today could be much higher than when you first purchased your home.
Acquiring high-value items like jewelry, artwork, electronics, or collectibles could leave you underinsured if your current policy’s personal property limits don’t reflect these new additions. Many homeowners policies have limits on certain high-value items, so you may need an endorsement or “floater” policy to ensure these possessions are fully protected.
Adding safety features like a home security system, smoke detectors, or a new roof can lead to lower premiums and may qualify you for discounts. However, it’s also a great time to review your coverage to ensure all upgrades are accounted for, which could reduce your risk profile and increase your overall protection.
If your area has updated building codes, your policy may not cover the cost to bring your home up to code after damage. An “ordinance or law” endorsement can help cover these costs, ensuring that you’re not financially burdened with code-compliance costs after a loss.
Significant life events like getting married, having children, or having adult children move back home mean more possessions and a higher total property value. These changes should prompt a reassessment of your home’s contents coverage to ensure everything your family owns is protected.
If you live in an area where natural disasters like hurricanes, wildfires, or floods have become more frequent, you may need additional protection. Standard home insurance typically does not cover events like floods or earthquakes, so supplemental policies or endorsements might be necessary to ensure adequate coverage.
If you’ve started working from home or run a business from your property, consider whether your business equipment and liability are protected. Most standard policies don’t cover business-related items or liabilities, and a home office or business endorsement could prevent gaps in coverage.
Inflation and supply chain issues can increase the cost of materials and labor required to rebuild a home after a covered loss. If rebuilding costs in your area have risen since you purchased your policy, your current coverage might not reflect these increased costs, leaving you with a coverage gap.
