This week began my annual search for more affordable home owners insurance. Once again, I am finding that premiums are still high no matter what the market value of the home is set at.

Each year when our renewal notices come through for our home contents insurance and/or home buildings insurance, most of us automatically sign the form and send it back to the insurance company. After all, it is a necessity and we already know how much the premiums are going to be and in some areas, we are happy just to have the policy. Big financial mistake, and here are 4 reasons why you need to update your information with your policyholder.

Did You Buy Anything New In The Last Year?

If you bought anything new in the last year, say a new television or video recorder, then the value of this new purchase will not be included in the renewal notice you just sent off to the insurance company. Likewise, if you sold anything of value over the last year, and have not informed the insurance company, then you are paying home contents insurance for something you no longer own. Either way, your not paying the right amount of insurance premiums.

Did The Costs Stay Static?

If you have home contents insurance then you are insuring your personal property for the replacement cost of buying the same thing new. On the other hand, part of your home buildings insurance should cover the cost of labour and materials. Now ask yourself, would the cost of replacing the picture hanging in your living room be the same today as it was last year? If the answer is that it would cost you more, tough luck, you�ll only get paid out what you said the cost of replacing it would be! The same can be said of your friendly builder, would he charge you the same for an hour of his time and for his materials today as he would have done last year? If the answer here is no, then you should be expecting to pay him the difference.

Did The Value Of Your Home Stay The Same?

This is something that is area specific. In some areas of the country, this does not apply. Similar to the above, with your home buildings insurance you need to be asking yourself whether or not the value of your home stayed the same this year as it was last year? You need to be asking yourself this question even if you didn�t do any work to the house � such as building an extension � that would naturally automatically add value to your home.

In Florida, the insurance company sets the value of your home no matter what the market value is. Many people find themselves paying for policies with the coverage at $50,000 and over the market value.

Is Your House Any Safer Today?

Here the question is, have you done anything to your house over the last year that would mean your home would be considered safer today than last year? For example, did you add any security systems to your doors or windows? If so, then there�s a very good chance your home contents insurance premium would be reduced, as the security in your house is a major consideration in assessing your premium (along with the crime rate in your neighbourhood, so you may also want to check and see if this has gone up or down also).

Keep in mind that time stands still for no man. As such, you need to read your home contents insurance and/or home buildings insurance renewal notices very carefully to make sure that they reflect, as accurately as possible, your life today and not your life of past years.