It is essential to review your home insurance at least annually. Instead of signing the renewal statement and sending it back without a second thought, take time to evaluate whether your homeowners insurance policy is really the best fit for you.

When reviewing your home insurance policy ahead of renewal, focus on the following areas to help you decide on whether or not to renew the policy.

1. Are You Adequately Covered? 

Being underinsured will leave you to incur some expenses in an event claim when you are forced to pay some amount out-of-pocket. Does your home insurance policy provide you adequate coverage for your dwellings, personal belongings, liability, and additional living expenses?

Consider what events or disasters you may be susceptible to but aren't covered under your current policy. Are you covered in the event of water backup? Are you adequately covered for personal property now that you have added to your inventory of assets and contents in your home?

2. How Much Are You Paying?

The age of your home, its size, and its location are among the top considerations when calculating home insurance premiums. Get quotes from other insurers for the same coverage you currently have to determine whether or not you are getting the best price. It may be time for a switch-up if you realize that you can pay less for the same or even better coverage than what your current homeowners insurance provider is giving you.

3. Quality of Service

What has been your experience with the insurance company since last renewing your home insurance policy? Think of the quality of service you got when you filed a claim in the last year. Did the insurance company handle your claim efficiently, and was the customer service friendly? 

Were you impressed with how the company communicated with you and the support you received? Adequate coverage and low cost are great, but poor customer service may be the deal breaker that sends you looking for another insurance company.

If you are yet to have an event, consider the experiences of other clients. Check out online reviews and what others have to say about the insurer's quality of service on online community forums. If you know someone who is insured under the same company, ask about their experience.

Don't Rush

Don't be in a rush to sign your home insurance renewal statement. Also, don't rush to sign up for a policy elsewhere before fully understanding how the new insurer compares to your current provider and if going with a different carrier will get you better coverage and service at the same or better price.