Renewing Your Insurance Policy

Policy renewals are where insurers quietly change your coverage, raise premiums, and add restrictions without you noticing. Most homeowners treat the renewal packet like junk mail. That’s how people end up with higher deductibles, lower limits, and new exclusions they didn’t agree to.

If you don’t have your policy documents organized already, review storing your documents safely. You need past versions on hand to spot changes.

1. Why Premiums Increase at Renewal

Premium hikes aren’t random. They’re tied to:

• Local disaster history (storms, fires, hail)
• Rebuild cost inflation (materials + labor)
• Your personal claim history
• Insurer-wide loss ratios

Even if your home wasn’t damaged, your region’s risk profile affects your price.

2. Hidden Coverage Changes to Watch For

Insurers can legally modify your policy at renewal—as long as they notify you. That notification is often buried in the renewal packet.

• Higher deductibles (especially wind/hail)
• Switching roof coverage to ACV
• New exclusions for water damage
• Lower personal property limits
• Reduced ALE (loss of use) coverage

If you see “roof surfacing – ACV,” go read ACV vs RCV immediately.

3. How to Compare Last Year’s Policy to This Year’s

You can’t spot changes if you don’t compare line by line. Use last year’s declarations page and the new one.

• Check dwelling coverage (should rise with rebuild cost)
• Check liability limits
• Check deductible amounts
• Check endorsements added or removed
• Check excluded perils

Keep old versions organized—this is why safe storage matters.

4. When You Should Shop Around

Shopping doesn’t mean switching. It means controlling your leverage.

• Your premium jumps more than 15%
• Your deductible increases without reason
• Your roof is downgraded to ACV
• Your insurer adds major exclusions

A new quote gives you comparison power—even if you stay with the same insurer.

5. What You Can Negotiate at Renewal

Agents have more flexibility than homeowners think.

• Deductible adjustments
• Reinstating RCV on roofs (sometimes)
• Raising ALE limits
• Bundling discounts
• Improved liability limits

Don’t accept the renewal as-is. Ask questions and push back.

6. Watch Out for Conditional Renewals

Insurers sometimes renew with conditions. This is essentially a warning.

• Roof repair required
• Tree trimming required
• Electrical or plumbing corrections

These conditions are tied to inspection findings. If you want to understand how insurers evaluate your home, review inspection basics.

7. When Non-Renewal Happens

Sometimes insurers pull the plug entirely—especially in high-risk areas.

• Too many claims
• Roof too old
• Home doesn’t meet underwriting standards
• Regional risk too high (wildfire, hail, hurricane zones)

A non-renewal letter is not the same as cancellation—it gives you time to find a new carrier.

8. What to Do Before You Accept the Renewal

• Compare old and new declarations
• Check for ACV switches
• Update your inventory
• Confirm coverage limits match rebuild cost
• Ask your agent to explain any ambiguous changes

Renewal is not automatic protection—it’s a contract update. Treat it like one.