11/05/2025
How often you should review your homeowners insurance policy—and what to look for
Most homeowners insurance policies automatically renew each year. A month or two before renewal, you should receive documents outlining the details of your new policy.Taking the time to thoroughly review these documents can help you spot any changes, decide if updates are needed to maintain adequate coverage, or determine if it’s a good time to explore quotes from other insurers. If you don’t act, your policy will likely renew automatically as long as you keep paying your premiums.
To help you know what to look for when reviewing your renewal documents, we’ve compiled a list of key points to focus on below.
Pay attention to these things
Increased premiums: Check if your premium is increasing, as they often rise annually. If the cost of yours is going up, seek an explanation within the documents or clarify with your agent. Factors like inflation, a recent claim, a drop in your credit score, or an uptick in regional risk from natural disasters (e.g., wildfires, floods, hurricanes) could be the cause.
Policy changes and updates: Insurers occasionally update their policy terms, which may include adding new exclusions or coverage limits. It’s important to be aware of changes, such as those related to mold, wildfires, or water damage. Taking the time to compare your old policy with the proposed new coverage can help you identify changes and respond accordingly.
Accurate property value after renovations: If you’ve made renovations that increased your property’s value, it’s a good idea to notify your insurance company. This helps ensure your policy accurately reflects your home’s new value and provides adequate coverage in the event of damage. Be specific about the changes you made, including the materials used, to help your insurer adjust your coverage (including the replacement cost) appropriately.
Identifying unused discounts: It’s important to review your policy for available discounts—including any you may have previously overlooked—to help ensure you’re maximizing your savings. Identifying untapped opportunities for things like bundling different types of policies, home improvements, no-claims discounts, payment history, or additional safety upgrades can help lower your premiums.
Changes in personal property: Ensure your belongings are adequately covered under your insurance policy, especially if you’ve recently acquired expensive personal items. You may need to update personal property coverage or add personal article coverage to fully protect new high-value possessions such as jewelry, furniture, appliances, electronics, and artwork.
Adding new protection: If your neighborhood has become more susceptible to risks like natural disasters, extreme weather, or crime, taking steps to protect your home from potential losses could be a good idea—even if it’s just for your peace of mind.
Coverage for outdoor additions: Structures that aren’t attached to your home, such as a gazebo, tool shed, wooden deck, or fencing, may qualify for other structures coverage. If you’ve made new additions, consider increasing this coverage since they may not be fully protected in the event of a total loss. Keep in mind that pools, hot tubs, and trampolines are high-risk additions that typically require explicit coverage for property or liability claims. If you haven’t already done so, be sure to add them to coverage before renewal.
Lock in coverage
Setting aside time to do a side-by-side review of your existing homeowners insurance policy with your proposed new policy will help ensure your coverage aligns with your current needs. Knowing your home is covered with adequate protection can give you a sense of security and peace of mind.
More importantly, a thorough review of your renewal can be an excellent time to shop around and compare quotes and coverage options from other insurance companies. If you decide to switch, inform your current company in writing that you want to cancel.
If you’re overwhelmed by all the details and jargon, set up a call with your insurance agent and have them walk you through the different aspects of your renewal. This can provide you with understanding and clarity to make informed decisions about your policy.
