When you have a homeowners insurance policy, you get the confidence in knowing that your home is protected from many different perils. You must make sure your policy is active if you want to keep receiving coverage, so learning more about the policy will help you make sure your coverage does not lapse or end. Home insurance does typically renew automatically, and you are given a notification ahead of time of this renewal. Without a notification, you should not assume the policy is renewing.
- Homeowners insurance usually renews automatically
- You will be given a written notification prior to your renewal date
- It is never advised to assume your policy is in place unless you receive this notification
How to adjust or change your homeowners insurance policy
Prior to your renewal date, you will receive a written notice that your policy is up for renewal. During this time, you have a few options you can choose from.
- You may choose to renew the same coverage you currently hold. This means your policy will renew upon the date listed on the renewal notification, and nothing about your policy will change except for its effective dates.
- If you want to change your coverage, you need to inform the insurer that you would like to request different coverage limits. Doing this in advance will help you ensure that your policy does not lapse and will continue with the new coverage upon renewal.
- There is also the option to change insurance companies. If you begin shopping around and want to purchase a new policy elsewhere, you must give your current insurer written notice and provide your new insurance company with the name of the new company and policy number.
You can expect your renewal notice 30-60 days before the policy is set to renew. This will give you plenty of time to make adjustments that you see fit.
Will the rate of your home insurance policy change upon renewal?
Pay close attention to your home insurance renewal notification. Usually, you will get a letter in advance notifying you about the new premium and a breakdown of monthly payments. Rates can change year by year because of certain factors. The insurance company has the right to adjust its rates, so you might not be paying the same amount even if you decide to stay with the exact same coverage.
If you add coverage or change your coverage, you can also expect a price difference. Make sure you get a new premium quote before you agree to any changes so you know exactly what to expect.
Because insurance rates can vary, this could mean that one insurance company will be the cheapest for a year and then another will be cheaper the next. This is why many people opt for new insurance policies upon renewal.
You will get the exact coverage you need when you pay attention to your renewal notification. This period of time is very important because it allows you to make any changes that are necessary before the policy automatically renews. It will also let you confirm the monthly premium you must pay.
