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.
Does Homeowners Insurance Automatically Renew Every Year?
Updated: December 10, 2025
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Key Takeaways
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.
Does Homeowners Insurance Automatically Renew?
Do Premiums Change After Homeowners Insurance Renewal?
Homeowners insurance premiums typically change at renewal, often increasing due to inflation, claims history and property value changes. Your renewal notice will show the new premium amount and explain any rate adjustments.
History of claims
Frequent or large claims can increase your premiums. Insurance companies see higher risk in insuring properties with a history of multiple or costly claims.
Increase in property value
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.
Coverage adjustments
Adding or reducing coverage affects the premium amount. Enhanced coverage for additional structures or high-value items increases your overall insurance cost.
Local factors
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.
Inflation
Rising costs of materials and labor increase premiums. Insurance companies adjust premiums to cover the increased costs of repairing or rebuilding homes.
Changes in credit score
Changes in your credit score affect your insurance rates. Insurers often use credit scores to gauge financial responsibility and potential risk.
Policy discounts
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.
ARE THERE HOME INSURANCE RENEWAL FEES?
Home insurance renewals don't charge additional fees beyond your premium.
When Home Insurance Might Not Renew Automatically
Homeowners insurance renews automatically unless specific situations interrupt it. Address potential issues before your policy expires to avoid coverage gaps:
If You Missed Payments
If you fall behind on payments, your insurer may refuse to renew the policy. Even one lapse can put your home at risk of being uninsured and complicate getting coverage in the future.
If You Have a High Number of Claims
Filing frequent or costly claims can make your property appear too risky to insure. Insurers may choose not to renew if they determine the claims history suggests ongoing financial exposure.
If The Insurer Is Leaving the Market
Insurance companies occasionally withdraw from certain states or regions. This nonrenewal isn't based on your individual risk profile. Your insurer must provide advance notice in your renewal documentation, giving you time to find replacement coverage before your current policy expires.
Property Condition Issues
If inspections reveal problems such as an aging roof, outdated wiring or other hazards, the insurer may decline to renew. Addressing these issues before renewal increases your chances of keeping coverage.
What to Consider Before Your Home Insurance’s Renewal
Annual renewal provides an opportunity to reassess your coverage before your policy automatically continues. Review your renewal notice to evaluate whether coverage limits, endorsements and deductibles still match your needs, or if adjustments are necessary before the renewal takes effect.
Coverage limits
Verify your coverage limits reflect your home's current replacement cost. Adjusting these limits at renewal prevents being underinsured.
Policy endorsements
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.
Exclusions and limitations
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.
Deductible amount
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.
Claims process and customer service
Review your insurer's claims handling and customer service if you've had issues. Consider switching if you experienced problems during your policy term.
Discounts
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.
How to Renew Home Insurance
Homeowners insurance renews automatically each year, but you need to review renewal notices carefully. Check that coverage limits match your current home value before accepting renewal terms. Take these steps during renewal:
- 1Review the Renewal Notice
Read your insurer's renewal notice and note any changes to coverage, premiums or terms. This document shows what you need to make informed policy decisions.
- 2Assess Your Coverage Needs
Evaluate how your home, belongings or lifestyle changed. Home improvements, new purchases or increased risks may require coverage adjustments.
- 3Compare Quotes
Get quotes from other insurers to confirm you're getting the best rate. Shopping around reveals better deals for the best home insurance or coverage matching your current needs.
- 4Contact Your Insurer to Make Changes
Your policy renews automatically if you stay with your current insurer. Update your coverage, deductibles or endorsements based on your assessment. Confirm all changes in writing to keep your policy current.
- 5Pay the Premium
Mortgage holders pay insurance premiums through monthly mortgage payments, so keep making on-time payments. Without a mortgage, pay the premium shown in your renewal notice on time to avoid coverage lapses.
SWITCHING HOMEOWNERS INSURANCE COMPANIES BEFORE RENEWAL
You can switch homeowners insurance companies before your automatic renewal takes effect. Secure your new policy with an effective date that matches your current policy's expiration to prevent coverage gaps. Switching at renewal typically avoids cancellation fees that may apply if you cancel mid-term.
Home Insurance Renewal vs. New Policy: What’s the Difference?
Homeowners insurance renewal differs from buying new policies in cost and convenience. Renewal saves time and money with existing coverage, but new policies work better when your current coverage no longer fits your needs.
Underwriting | Usually no new underwriting, making the process quick and automatic. | Requires a fresh application and underwriting review of your home’s risks. |
Continuity of Protection | Ensures uninterrupted coverage with no gaps in financial protection. | May cause coverage gaps if the new policy isn’t timed to start when the old one ends. |
Premiums | Adjusted based on claims history, property value and market factors. | Set from scratch, potentially allowing you to find lower rates if switching providers. |
Can Insurance Providers Reject a Home Insurance Renewal Application?
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.
Getting homeowners insurance after being dropped or rejected requires fixing the problems that caused nonrenewal, then exploring other options.
Does Home Insurance Automatically Renew: Bottom Line
Homeowners insurance renews automatically every year, maintaining continuous coverage. Review your renewal notices carefully to understand any changes to coverage, premiums or policy terms before your policy renews.
Renewal notices detail changes to coverage, premiums and policy terms. Review these updates to decide whether you need coverage adjustments.
Homeowners Insurance Renewal: FAQ
We answer common questions about the homeowners insurance renewal process:
Will my premiums stay the same when my homeowners insurance renews?
Homeowners insurance premiums change at renewal due to risk assessment changes, inflation and claims history. Review your renewal notice to understand cost adjustments.
Can I change my coverage when my homeowners insurance renews?
You can modify homeowners insurance coverage when your policy renews. Use renewal time to reassess your needs and adjust your policy coverage.
What should I do if I don’t receive a renewal notice for my homeowners insurance?
Contact your insurer immediately if you don't receive a renewal notice. Confirm your policy status to prevent coverage gaps.
What happens if I miss the payment for my homeowners insurance renewal?
Missing your renewal payment cancels your policy and stops the automatic renewal process, leaving you without coverage. Most insurers provide a grace period of 10 to 30 days after the renewal date before canceling coverage. Contact your insurer immediately if you miss a payment to restore coverage before the grace period ends.
How far in advance will I receive my homeowners insurance renewal notice?
Most insurers send renewal notices 30 to 60 days before your policy expires. This advance notice gives you time to review changes and make coverage adjustments before your policy automatically renews. Contact your insurer if you don't receive a notice at least 30 days before your renewal date.
Home Insurance Renewal: Related Pages
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.