Updated: August 29, 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. Here's what affects your rates and how you can manage increases:
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.
Home insurance renewals don't involve additional fees because the process is automatic. Your renewal notice reflects the premium for the upcoming policy term, not a separate fee, but policy or coverage changes affect your overall premium amount.
Homeowners insurance renewals happen automatically, but certain situations interrupt the process. Avoid unexpected coverage lapses by understanding renewal interruptions and addressing potential issues before your policy expires:
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.
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.
Sometimes the company itself stops offering policies in your state or region. This isn’t about your individual risk but still results in your policy not being renewed.
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.
Prevent claim surprises by reviewing your home insurance policy before renewal to ensure it meets current needs. With changes in your home's value, personal belongings and potential risks, evaluate coverage adjustments carefully. Understanding policy details protects you 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.
Homeowners insurance policies renew automatically each year, but renewal notices require your careful review. Verify your coverage limits align with current circumstances and fully protect your home value before accepting renewal terms because policy changes affect your protection level.
Take these steps during renewal:
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.
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. |
Discounts | Lets you maintain loyalty and multi-policy discounts you may already have. | May open up new discounts if your current insurer doesn’t offer competitive ones. |
Convenience | Simple process since your insurer already has your information. | More time-consuming, requiring shopping around, paperwork and proof of coverage for your lender. |
Lower your insurance premiums by using proactive strategies and regular policy reviews. Manage costs while maintaining full protection by:
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. Check your state's specific regulations because practices may vary.
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 to get accurate estimates:
Rates shown are estimates based on sample profiles and may not reflect your actual premium. Individual rates vary based on multiple factors including location, home characteristics, and personal circumstances.
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:
Aug 29, 2025
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
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 renews automatically every year, ensuring continuous coverage for your home. Maintain continuous coverage to satisfy mortgage lender requirements and avoid loan agreement violations.
With renewal notices, your insurer details changes in coverage, premiums and policy terms. Review these updates carefully to decide on coverage changes and address any needed adjustments.
These answers address common questions about the homeowners insurance renewal process and coverage decisions.
Homeowners insurance renews automatically each year. Your insurer sends you a renewal notice before your current policy expires.
Homeowners insurance premiums change at renewal due to risk assessment changes, inflation and claims history. Review your renewal notice to understand cost adjustments.
You can modify homeowners insurance coverage when your policy renews. Use renewal time to reassess your needs and adjust your policy coverage.
Contact your insurance company immediately to confirm your homeowners insurance policy status if you don't receive a renewal notice. This prevents coverage lapses.
Missing your homeowners insurance renewal payment causes your policy to lapse, leaving you without coverage. Contact your insurer immediately to restore coverage and avoid extended lapses.
Your insurance company can decline to renew your homeowners insurance based on claims history and increased risk factors. Your insurer must notify you in advance of nonrenewal decisions.
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.
