7 Signs You Need to Update Your Property Insurance

Most people don’t think about their property insurance until something happens. But when was the last time you made sure your coverage was up to date? It’s far more painful to review your policies after a tragedy strikes.

Here are a few reasons you may want to contact your agent or broker to adjust your property insurance.

1. Change in ownership

Notify your agent of any changes that affect your deed. You could experience delays at claims time if the name on the deed differs from the one on the policy. If you own your building through a corporation or other legal entity, that entity would need an insurance policy to cover the building. If you’re living in one of the units, you would need a separate policy as a tenant.

2. Replacement cost adjustments

Make sure you consider the replacement cost of materials, especially when high-quality materials, like granite or marble, are used. Another factor would be millwork and any special craftsmanship, commonly found in Brooklyn brownstones and other historic properties. Both construction materials and labor costs have increased in recent years, which makes it especially important to review your coverage annually. If something happens to your building, you don’t want to replace natural-stone countertops with laminate.

3. Additions or upgrades

If you made any recent additions or upgrades to your building, the property’s value has probably changed, and you’ll need to update your policy. At the same time, certain improvements—like updated building systems and additional safety devices—may qualify for a premium reduction.

4. Recent acquisitions

If you’ve made any major purchases for your property, such as new lobby furniture or artwork, contact your insurance partner as soon as possible. Depending on the purchase, you may need to submit an appraisal along with your insurance change, but be sure to do that quickly.

5. Rising property values

Many of us sneak a peek on Zillow now and then, so if you’ve noticed property values increasing significantly in your area, call your agent. You may need to adjust the protection to make sure you can repair or replace in today’s market.

6. Outdated deductible

If you’ve had your property—and your policy—for some time, your financial situation may be quite different now than when you first bought the coverage. If you can afford a higher deductible, you’ll qualify for lower premiums.

7. Rent roll changes

Don’t forget to review your Loss of Rents coverage annually. This protection reimburses building owners for lost rental income if a covered peril requires tenants to move out while the space is repaired. Updating the rent rolls annually keeps Loss of Rents coverage current, in case monthly rents have increased.