- Review your home insurance policy yearly to make sure your coverage still fits your home, belongings and needs.
- Update your policy after renovations, additions or major purchases that could change your coverage needs.
- Check your deductible, limits and valuable-item coverage, not just your premium.
- Ask about added protection like extended replacement cost and flood insurance.
Is Your Home Insurance Coverage Up to Date?
Homeowners insurance helps protect your home when the unexpected occurs, but there may be gaps in your coverage. In fact, more than half of homeowners are underinsured.¹ According to Christopher P. Hackett, senior director of personal lines for Property Casualty Insurers Association of America (PCIAA), it’s smart to revisit your policy at least once a year and review your deductible and coverage options.
Key Takeaways
In this article, you’ll learn some tips that will help you check your homeowners policy and make sure your home insurance coverage still fits your home, belongings and everyday needs.
Quick takeaway: A home insurance coverage checkup can help you confirm your limits, deductible and optional protections before you need to file a claim.
When to update your home insurance policy
Here are some situations that might cause you to reevaluate your coverage:
| What to review | Why it matters | What to ask |
|---|---|---|
| Home updates | Renovations or additions may change replacement cost and coverage needs. | Does my policy reflect the current details of my home? |
| Deductible and premium | A lower premium may come with more out-of-pocket cost after a claim. | Could I comfortably afford this deductible if I had a loss? |
| Valuables | High-value belongings may exceed standard policy limits. | Do I need additional coverage for jewelry, art or electronics? |
| Replacement cost options | Construction costs can rise over time. | Should I ask about extended replacement cost coverage? |
| Flood risk | Standard homeowners insurance generally doesn’t cover flood damage. | Would separate flood insurance make sense for my location? |
Update your home insurance policy when you do major home renovations
Home updates – including adding square footage, structural materials, flooring materials, and the number of bedrooms and bathrooms – could impact how much coverage you need. Ask your insurance representative to recalculate your coverage using new, up-to-date information.
With any big change you make to your home, Hackett says the more information and documentation you can provide, the better. “That’s going to help your insurance company arrive at the most accurate replacement cost figure as possible,” he says.
For instance, installing an alarm system or other risk-mitigation systems could equate to a discount, while putting in a shed or swimming pool may require increased coverage.
Quick tip: If you’re unsure what homeowners insurance covers after a renovation or new addition, this is a good time to ask for a policy review.
Consider value along with cost
A lower monthly premium is nice, but it may be less expensive because it doesn’t meet your coverage needs. Review your policy and confirm you’re choosing the right coverage based on value rather than cost. Consider increasing your deductible to lower your overall monthly payment, but only do this if you’re sure you can cover the deductible in the event of a loss.
Reviewing home insurance coverage? It helps to look at both what the policy costs and what protection it provides. This will help you evaluate deductibles and limits as you go.
Protect new valuables
If you’ve made any expensive purchases such as jewelry, artwork or electronics, find out whether or not your current policy will cover the full replacement value of your items. If not, you may need to update your policy to include personal property replacement coverage and/or scheduled personal property coverage.
Hackett recommends you “review your valuable personal property items and discuss them with your insurance company.”
Got valuable personal property? This step can be especially helpful if you’re reviewing what homeowners insurance covers for items that may fall outside standard limits.
Add the extended replacement cost coverage
Most policies have limits when it comes to dwelling replacement costs, but you may be able to add extended replacement cost coverage. Extended replacement cost coverage can help when increased construction costs push the expense of rebuilding above the policy limit. Because home values can vary based on quality and location, we recommend contacting your insurance company to provide an appropriate value and endorsement.
Discuss your need for flood insurance
Many people assume homeowners insurance covers flood damage; however, it’s not covered by a standard homeowners policy. Flood insurance is available through the National Flood Insurance Program, which may be obtained through your insurance company and gives you peace of mind should the unexpected occur. Most flood insurance policies have a 30-day waiting period,² so plan ahead regardless of where you live, as flood damage can occur even outside designated flood zones.
Need flood protection? Find out about the different kinds of flood insurance, how to get it, and if it covers water damage.
Wondering if you should update? We can help. Call 833-513-3881 and an Amica representative can help you check and evaluate your insurance policy.
Get a home insurance quote today
FAQs about home insurance coverage
Homeowners insurance may help cover your home, certain detached structures, personal belongings, additional living expenses and liability after a covered loss. Coverage details vary by policy, so it’s important to review your own documents for exact limits and exclusions.
Your homeowners insurance should reflect the cost to rebuild your home, the value of your belongings, your liability needs and any optional protections that make sense for your property and location.
You can often find your home insurance policy by checking your insurer’s online account or mobile app, reviewing recent policy emails or paper mail, or contacting your insurance representative directly.
To find out what homeowners insurance you have, review your declarations page and policy documents. These should show your coverage types, limits, deductible and endorsements.
It’s a good idea to review your home insurance coverage at least once a year and after major changes like renovations, new valuables or adding structures to your property.
New Survey Finds Majority of Insured Homeowners at Risk of Being Underinsured Amid High Inflation & Increased Building Costs, American Property Casualty Insurance Association, 2022.
Flood Insurance, FEMA.gov, 2026.
Your Policy, Policy Declarations or Amended Declarations in effect on the date of loss is the primary source of reference for your coverage, coverage limits and deductible amounts.
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