Does Having a Baby Change Homeowners Insurance?

Let’s go over if and when having a baby changes homeowners insurance. 

Having a baby will only affect homeowners insurance if you make substantial changes in your house to prepare for your child, like major renovations or expensive purchases. You may need to adjust your dwelling or personal property coverages in these scenarios.

But, there are some things you should watch for in your insurance that a baby can influence. Below, we’ll go over the aspects of your home insurance policy that may be affected.

Dwelling coverage is the part of your plan that financially protects the structure of your home and its essential systems. Dwelling coverage usually covers your home for its replacement cost, and you should have enough to rebuild your house sufficiently if it was destroyed. Insurers typically require that your dwelling coverage amounts to at least 80% of your property’s value, a concept called insurance to value.

Suppose you undertake major renovations to add a nursery, extra bathroom, or something else to your home for your child. In that case, you may want to contact your insurance agent to address your dwelling coverage. Significant remodels can alter the replacement cost of your home, which can call for an increase in dwelling coverage limits. 

Also, if you use a contractor for these renovations, you should ensure that they’re properly licensed and insured. This will limit your liability.

Know that home insurance rarely covers faulty workmanship if something breaks in the future due to a construction error or improper installation, so look for qualified and skilled contractors to do the job.

Other structures coverage is designed to cover features on your property not attached to your main house. When having a child, you should be aware of attractive nuisances in your policy, many of which fall under other structures coverage.

Pools are attractive nuisances. Adding a pool will likely raise your other structures and dwelling coverage. And, your insurer will probably want you to keep a baby-proof fence around your pool if you have a child.

Trampolines are attractive nuisances, too. They increase your liability risk due to the possibility of a trampoline-related injury. Getting a trampoline for your child will probably raise your rate, and some insurers won’t cover them altogether.

Personal property coverage values your possessions and financially protects them. If you make significant purchases, you should keep track of them and potentially up your personal property limits if necessary. 

New, baby-proof furniture or the latest items for a nursery could cost thousands of dollars. Electronics, tools, art, and more fall under personal property coverage. You should account for these in your insurance plan.

Keep receipts of any significant purchase so you know how much it would cost your insurer to replace it if it gets damaged or stolen. Keep an up-to-date home inventory list for insurance claims to know what you have and how much it’s all worth.

Also, if new parents invest in safety features for the house, these can produce discounts on your insurance. Many insurers offer discounts for getting a monitored home security system or a Ring doorbell camera. You also may reduce your premiums if you have deadbolt locks or fire alarms in your house. These features reduce the chance of a claim arising from your home, which insurers like.

Discounts for home safety features vary by company, so be sure to ask if you want to take advantage. You may also need to submit a certificate to your carrier proving you have a professionally-monitored burglar system before getting the discount.

Liability coverage can pay medical expenses and legal fees if someone gets hurt on your property. Think about raising liability limits after having a child if you only have the minimum amount. Most policies start with $100,000 in liability coverage, which can go fast if a guest gets hurt at your house and medical bills start piling up.

Protecting your finances after having a kid is more important than ever, so you may want to increase your liability limits to be safe and proactive. Raising your liability limits is relatively inexpensive compared to other parts of your plan. You can get hundreds of thousands of dollars more of protection for tens of dollars every year. Most insurers recommend having $500,000 in liability coverage. If you have a lot of assets, you should look into umbrella protection.

Also, note that an inquisitive toddler can turn destructive and cause insurance claims. They can clog pipes, damage someone else’s property, and more. Upping your liability limits would be a proactive and wise move to prevent freak incidents.

To make any alterations to your policy after having a child, you’ll need to get in touch with your agent or provider. If you’re not satisfied with your current home insurance coverage, Clovered can help. 

We’re an independent insurance agency that partners with several of the top providers in the country. We’ve helped thousands find the insurance they need at the price they want.

You can get a quote entirely online, and you can compare options to find the plan that suits your needs. Or, you can always chat with one of our licensed agents if you have questions.