Most home insurance policies renew automatically. A few weeks before the date, your insurer sends a renewal notice, often called a renewal declarations page. Many people look at the total, sigh, and file it away. It is worth ten minutes, because the notice shows not just what you will pay but what you will be covered for.
What is on a renewal notice
Layouts differ by insurer, but nearly every notice includes the same parts:
- Policy period: the start and end dates of the new term.
- Premium: the total for the year, sometimes shown next to last year's figure.
- Coverage limits: usually labelled Coverage A to F (dwelling, other structures, personal property, loss of use, liability and medical payments).
- Deductible: what you pay towards a claim before the policy pays. Some policies have a separate, higher deductible for wind or hail.
- Endorsements: add-ons or changes to the standard policy, such as water backup or scheduled jewelry.
- Discounts: the credits applied, such as bundling, a security system or being claim-free.
Five things to check before it renews
1. Did the dwelling limit go up?
Many insurers raise the dwelling limit each year to keep pace with building costs. That is often sensible, since the limit should cover the cost to rebuild, but it is also one of the most common reasons the premium rises. Check the new figure against a recent rebuild estimate.
2. Did the deductible change?
Look for a changed all-perils deductible or a new percentage deductible for wind or hail. A 2% wind deductible on a $300,000 dwelling limit means the first $6,000 of a wind claim is yours.
3. Have any discounts dropped off?
Discounts sometimes lapse, for example if a monitoring certificate expired or a bundled auto policy moved elsewhere. If one is missing, ask why.
4. Is anything excluded that used to be covered?
Read the endorsements section for new exclusions or limits, especially on roof damage, water damage and older roofs paid at actual cash value rather than replacement cost.
5. How does the price compare?
The renewal price is one insurer's view of your home. Others may price the same home and the same coverage quite differently. Comparing before the renewal date gives you time to switch, or to ask your current insurer to do better.
Timing tip: start comparing three to four weeks before your renewal date. If you switch, start the new policy before cancelling the old one so there is never a gap in cover.
If the price went up
A higher renewal does not always mean you are being overcharged. Rebuilding costs, regional claims and reinsurance costs push prices up across whole states. But the increase is not the same at every insurer, which is why the same home can be quoted very differently. See how to compare quotes like for like before deciding.
More guides
- How to Compare Home Insurance Quotes Like for Like
- 8 Practical Ways to Lower Your Home Insurance Premium
This guide is general information, not insurance, legal or financial advice. Coverage and pricing vary by insurer and state.