Rising inflation, supply chain issues, and reconstruction and labor costs are among the many factors determine your annual home insurance premium. Because so many things go into calculating your premium, reviewing your home policy each year is a good idea to ensure you get the right coverage and pay the best rate.
Insurance companies like MAPFRE send a declaration page before your annual home renewal is due. When you receive your renewal, it’s a great time to review the policy to ensure accuracy.
The declaration page you receive or find in your online MAPFRE account will summarize your home policy, coverages, deductibles, and applied discounts. Regarding coverages, the more you have, the higher your home insurance premium will usually be. You will also have a higher rate if you choose a low deductible. Your independent agent can assist you to see if you need all of your current coverages, need to increase coverage, or if you could raise your deductible to lower costs.
While you should review your policy each year, the Insurance Information Institute also recommends reviewing your home insurance policy during significant events.
Life-changing events
Various circumstances throughout a renewal term can be considered life-changing events. These events may lower your premium but require you to add more coverage, raising your cost. Some of these events include:
- Moving to a new home (this requires a new policy).
- Renting out a portion of your home.
- Changes in family size include getting married, divorced, having a child, or having an adult child move in or out. (These changes impact your personal property and liability coverage.)
- Adding a pet (which may increase the risk of injury to others).
Acquiring valuable items like electronics, jewelry, and artwork. With MAPFRE, this may require the Valuable Possessions Coverage endorsement for items typically not covered under your standard homeowner’s policy.
Major improvements to your home
Homeowners who make improvements but don’t inform their insurer may risk being underinsured. The following enhancements can increase a home’s replacement cost while requiring increased dwelling coverage:
- Home additions
- Remodeling a room (like a kitchen or bathroom)
- Finishing a basement
- Enclosing a porch
Things outside your home but on your property that you may add or improve also require additional coverage. These things include:
- Pool
- Hot tub
- Garage
- Shed
- Fence
- Gazebo
- Driveway
- Trampoline, swing set
When safety updates are made
There are things you can do to protect your home that can help lower your annual home insurance premium. Among those things:
- Upgrading your electrical or plumbing system.
- Installing a water leak monitoring system.
- Installing fire alarms and carbon monoxide detectors.
- Installing security systems like ADT.
If you’re looking to lower the costs of what you pay for your home insurance, most insurers like MAPFRE offer discounts if you buy at least two kinds of policies from them, typically called “bundling.” For example, if you bundle your home and auto insurance, you could qualify for a reduced rate.
While discounts vary from state to state, other discounts you could qualify for with MAPFRE are:
- Good Roof Condition
- Protective Device Discount
While being a homeowner can have challenges, the vipHome.app can help you avoid costly repairs and claims. When you download the free vipHome.app provided by MAPFRE, you’ll get expert recommendations for home improvement that will increase your home’s value, safety, and enjoyment. You’ll also receive critical weather alerts with timely actions on your phone.
Homeowners insured with MAPFRE can protect their family and property with exclusive security packages from SafeStreets, an ADT-authorized provider while saving on homeowners insurance. SafeStreets offers professionally monitored smart home security for intrusion, fire, flood, and carbon monoxide through our partnership.
What if you’re unsure what your home insurance policy covers or want to add additional coverage? In that case, your independent agent can always review your policy to ensure you have the coverage that best suits your needs. And if you don’t have MAPFRE for your home insurance, you can get the right coverage for your property by calling an independent insurance agent in your state or, if you live in Massachusetts, by getting a fast, free online quote today!
