Updated: June 25, 2025
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Before the home insurance policy renewal date, insurers send policyholders a notice outlining the policy and allowing them to make adjustments to their coverage.
Insurance premiums can change at renewal due to several factors, such as claims history, property value, local risk factors, inflation and credit score.
Renewal is an opportunity to reassess and adjust your coverage, add endorsements and ensure exclusions and limitations align with your current needs.
Homeowners insurance typically renews automatically each year. Before the policy expires, your insurer sends a renewal notice detailing any changes in coverage, premiums or policy terms. Review these updates thoroughly and contact your insurer if you wish to make any changes or switch providers.
Your home insurance premium often changes at renewal due to various factors, including updates in risk assessment and market conditions. Understanding these factors can help you anticipate and manage potential premium increases. Here are common reasons premiums change at renewal:
Frequent or large claims can increase your premiums. Insurance companies see higher risk in insuring properties with a history of multiple or costly claims.
Increases in your property's value can lead to higher premiums because the cost to rebuild or repair your home would be greater if damage occurs.
Adding or reducing coverage affects the premium amount. Enhanced coverage for additional structures or high-value items increases your overall insurance cost.
Changes in local crime rates or natural disaster risks affect premiums. Areas with higher incidences of theft, flooding or other risks have higher insurance rates.
Rising costs of materials and labor increase premiums. Insurance companies adjust premiums to cover the increased costs of repairing or rebuilding homes.
Changes in your credit score affect your insurance rates. Insurers often use credit scores to gauge financial responsibility and potential risk.
Losing eligibility for discounts increases premiums. If you no longer qualify for discounts, such as those for bundling policies or having a security system, your premiums will increase.
Your home insurance renewal typically doesn't involve additional fees, as the process is automatic. The cost reflected in your renewal notice is the premium for the upcoming policy term, not a separate fee. However, any changes to your policy or coverage may affect the overall premium amount.
Before your home insurance renewal, review your policy thoroughly to ensure it still meets your needs and provides adequate coverage. Evaluating changes in your home's value, personal belongings and potential risks can help you make informed decisions. Understanding your policy details prevents unpleasant surprises when filing a claim. Here are factors to consider during renewal:
Ensure your coverage limits adequately reflect the current cost to repair or rebuild your home and belongings if damage occurs. Adjusting these limits protects you from being underinsured during significant damage or loss.
Review endorsements or additional coverages you need, such as for valuable items, home offices or natural disasters. Adding necessary endorsements provides comprehensive financial protection tailored to your specific circumstances.
Familiarize yourself with your policy's exclusions and limitations. Understanding what isn't covered helps you decide if you need additional coverage or a different policy to fill those gaps.
Consider whether your current deductible fits your financial situation. Adjusting your deductible impacts your coverage and out-of-pocket expenses during a claim, so choose a balance that works for you.
Evaluate your insurer's claims process and customer service reputation. The best homeowners insurance providers offer smooth claims processes and responsive customer service, creating a positive experience when you need to file a claim.
Check for discounts you qualify for that weren't previously applied. Discounts for loyalty, home safety features or bundling with other insurance policies enhance your coverage value.
Your homeowners insurance policy usually renews automatically. However, when you receive the renewal notice, ensure your policy still aligns with your circumstances and adequately covers your home. Here are steps to take when your policy renewal approaches:
Carefully read the renewal notice from your insurance company, paying close attention to any changes in coverage, premiums or terms. This document provides the necessary details to make informed decisions about your policy.
Evaluate changes in your home, personal belongings or lifestyle that affect your insurance needs. Consider factors like home improvements, new purchases or increased risks that require adjustments to your coverage.
Obtain quotes from other insurance providers to ensure you're getting the best rate for the coverage you need. Comparing options helps you find better deals or coverage that better fits your current situation.
If you decide to renew with your current insurer, the policy automatically renews. Make necessary updates to your coverage, deductibles or endorsements based on your assessment and discussions with your insurer. Confirm all changes in writing to avoid misunderstandings and ensure your policy is up-to-date.
If you have a mortgage, your insurance premium is included in your monthly mortgage payments, so continue making your regular mortgage payments on time. If you don't have a mortgage, complete the renewal process by paying the premium as indicated in your renewal notice. Pay on time to avoid coverage lapses and to keep your policy active.
You can switch homeowners insurance companies before your policy renewal. Get your new policy in place before ending your current coverage to prevent gaps. If you plan to cancel your existing policy before renewal, check for cancellation fees from your insurer.
Reducing your insurance premiums at renewal requires proactive strategies and regular policy reviews. These strategies help you manage costs while maintaining adequate coverage. Here are effective ways to keep your insurance premiums low:
You can cut insurance premiums by increasing your deductible. Be sure you have sufficient resources to pay increased out-of-pocket expenses if you file a claim.
Combining your home and auto insurance policies with the same insurer leads to discounts. Bundling conveniently manages your policies and reduces overall costs.
Installing security systems, smoke detectors and deadbolts lowers your premiums. These measures reduce the risk of theft and damage, making your home safer and less expensive to insure.
In every state except California, Hawaii, Massachusetts and Michigan, insurers use your credit history to determine rates. A stronger credit record can lead to lower insurance premiums.
Comparing home insurance quotes from different insurers helps you find the best rates. By shopping around, you can find the most affordable home insurance for your needs.
Inquire about available discounts, such as for being claim-free or having a new home. Many insurers offer various discounts that reduce your premiums.
Upgrading your home's electrical, plumbing or roofing systems can lower your insurance costs. These improvements reduce the risk of damage and claims, potentially reducing premiums.
Comparing personalized quotes from multiple providers helps you find the best and cheapest home insurance for your needs. Use MoneyGeek's home insurance calculator below to get accurate estimates.
MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jul 05, 2025
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Homeowners insurance companies can deny policy renewal for several reasons, including a history of claims, alterations to the property's condition or an increase in risk. If the insurer chooses not to renew your insurance, it must give you advance notice.
To get homeowners insurance after being dropped or rejected, address problems that prevented renewal and, if needed, explore other options.
Homeowners insurance typically renews automatically every year. This automatic renewal process ensures continuous coverage for your home, which is particularly important if you have a mortgage. Renewal affects rates and coverage options.
At renewal, your insurer sends a notice detailing any changes in coverage, premiums or policy terms. Reviewing these updates carefully helps you make informed decisions about your coverage and address needed changes.
Below are answers to frequently asked questions to help you understand the homeowners insurance renewal process and make informed decisions about your coverage.
Yes, homeowners insurance typically renews automatically each year. Your insurer usually sends you a renewal notice before your current policy expires.
Premiums can change at renewal due to factors such as changes in risk assessment, inflation or claims history. Review your renewal notice to understand cost adjustments.
Yes, you can make changes to your coverage when your policy renews. Renewal is a good opportunity to reassess your needs and adjust your policy accordingly.
If you don't receive a renewal notice, contact your insurance company to confirm the status of your policy. Avoid coverage lapses.
If you miss the payment for your renewal, your policy may lapse, leaving you without coverage. Contact your insurer immediately to discuss your options and avoid coverage lapses.
Yes, your insurance company can decide not to renew your policy based on factors such as claims history or increased risk. It must notify you in advance if it chooses not to renew.
Why Trust MoneyGeek?
MoneyGeek analyzed quotes from multiple insurance providers across the U.S. using a profile that reflects the average homeowner. By considering different locations and companies, we aim to give a reliable estimate of what homeowners can expect to pay — showing why it’s important to compare rates.
Methodology
MoneyGeek evaluated homeowners insurance carriers incorporating insights and premiums from the official databases of Quadrant Information Services.
Homeowner Profile
For our analysis, we created a sample homeowner profile with the following characteristics:
Homeowners Insurance Coverage Details
Unless otherwise specified, we used the following coverage limits to collect quotes for our comparison:
We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, upping limits to $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in liability coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
