Insurance Policy Review Basics

Most homeowners never read their policy—until they need it. By then, it’s too late. Insurers quietly adjust deductibles, downgrade roof coverage, and insert new exclusions at renewal. If you don’t review your policy yearly, you won’t notice until the payout falls short. This guide shows exactly what to check before you sign off on another year.

If you don’t understand how insurers judge your home in the first place, skim how insurers evaluate risk. Those same factors shape your renewal changes.

1. Start With the Declarations Page

This is the summary sheet showing your limits, deductibles, endorsements, and discounts. Compare this year’s declarations page to last year’s line-by-line.

• Dwelling coverage amount
• Personal property limit
• Liability limit
• Deductibles (especially wind/hail)
• Endorsements added or removed

A quick comparison exposes almost every meaningful change.

2. Look for Quiet Coverage Downgrades

Some insurers lower coverage without advertising it. The most common downgrades are:

• RCV roof → ACV roof
• Removed water backup endorsement
• New cosmetic damage exclusions for roofs
• Lower sub-limits on valuables

If you don’t know how ACV and RCV differ, refresh with ACV vs RCV.

3. Check Whether Your Home’s Rebuild Cost Increased

If construction costs rise (and they usually do), your dwelling limit needs to rise with them. Otherwise, you’re underinsured.

• Review inflation guard amounts
• Ask how rebuild cost was calculated
• Ensure upgrades you made are factored in

If you’ve renovated recently, make sure the insurer updated your dwelling limit. Use upgrade basics to confirm which renovations affect insurance.

4. Verify Deductibles Didn’t Creep Up

Some insurers bump deductibles to reduce their own cost exposure. Wind and hail deductibles are notorious for being quietly moved upward.

• Check if your flat deductible became a percentage
• Compare to last year’s declarations page
• Ask your agent directly if any deductibles changed

5. Review Your Endorsements

Endorsements plug the biggest holes in your policy. Make sure the ones you rely on are still active.

• Water backup coverage
• Extended dwelling coverage
• Scheduled personal property
• Service line coverage
• Equipment breakdown

If you need a refresher on what each endorsement fixes, read endorsements explained.

6. Confirm Liability Coverage Is High Enough

Liability is cheap and essential. If you added pets, a trampoline, a pool, or frequent guests in the past year, your liability needs may have increased.

• $300,000 is the bare minimum
• $500,000+ recommended for most homeowners
• Umbrella policies stack on top if needed

7. Reevaluate Personal Property Coverage

If you acquired new electronics, furniture, firearms, or jewelry this year, update your inventory and adjust your limits.

• RCV is preferred to avoid depreciation
• Schedule high-value items individually
• Update your home inventory annually

If you haven’t touched your inventory recently, start with inventory checklist.

8. Look for New Exclusions in the Fine Print

When insurers want to reduce their risk, they don’t always raise premiums—they add exclusions.

• Cosmetic roof damage exclusions
• Water seepage and leakage restrictions
• Foundation water exclusions
• Animal damage exclusions

Always scan the exclusions section each renewal. It changes more often than you think.

9. Ask Your Agent These Three Questions

• “Did any deductibles or endorsements change this year?”
• “Did the insurer apply any new exclusions?”
• “What’s the average renewal increase for this company right now?”

Agents often know what’s happening behind the scenes with the insurer’s book of business.

10. Review Your Policy Every Single Year

Insurance is not “set it and forget it.” The insurer updates their policy language whether you read it or not. Annual review prevents expensive surprises during a claim.