Home insurance renewal: Understanding your options and money-saving tips

Timothy Moore, CFEI

Timothy Moore, CFEI, is a contributing writer at Kin, a certified financial education instructor, and an insurance expert whose writing has appeared in Forbes, USA Today, Lending Tree, Credible, Tampa Bay Times, and elsewhere.

Updated Dec 30, 2025

A home insurance renewal is when your current home insurance company offers to insure your home for another term. Most insurers offer one-year terms, meaning you can expect a renewal offer once a year. Your insurer should provide a formal notification of your upcoming renewal about a month or so ahead of the actual renewal date.

Do homeowners insurance policies automatically renew?

Yes, homeowners insurance policies typically renew automatically. Assuming the insurer decides to extend a policy for another term — and you (the insured) don’t request to cancel the policy after reviewing the new policy details — the new policy will automatically go into effect on the stated date.

But just because the process is seemingly on autopilot, that doesn’t mean you don’t need to take action. You should always play an active role during your home insurance renewal to make sure:

• You’re getting the best deal
• You have the coverage you actually need

When and how home insurance renews

Homeowners insurance policies typically renew once a year on your original policy’s effective date. But most states require your insurer to provide written notice (via mail, email, and/or mobile app notifications) about the policy renewal in advance. State laws vary, but the renewal notice often comes about a month before the actual renewal date.

What to review before renewing

Each time you receive a home insurance renewal notice, you have the option to decline and find a new insurer. Make this decision carefully. It’s possible you could find cheaper coverage by shopping around with different companies. But your current insurer might still offer you the best price — especially if you ask whether you’re eligible for any discounts you’re not currently taking advantage of.

Here’s what to review before renewing your homeowners insurance policy:

• The new premium: While home insurance premiums can decrease, many homeowners are seeing rates rise. According to the Insurance Information Institute, this trend is driven by record inflation, rising labor and material costs, and a higher frequency of regional claims.

• Deductibles: Make sure you’re still comfortable with the deductibles you’ll pay when filing a claim. This is the amount of damage you agree to cover out of pocket.

• Coverage limits: Make sure the coverage limits offered still reflect the cost to rebuild your home and replace its contents. Consider whether you've made any significant home improvements or purchased valuable items that would require additional coverage.

• Discounts: Review your insurer’s website or call to chat with a representative to ask about any home insurance discounts you might qualify for to help lower your premium.

Why home insurance premiums increase at renewal

It almost feels inevitable: You receive your home insurance renewal notice, and the premium is higher than the year before. While that’s not always the case, home insurance premiums tend to increase each year. Here’s why:

• Inflation: The simplest reason — and the reason the cost of pretty much everything goes up year after year — is inflation.

• Claims history: If you filed a claim over the past year, your rate will also likely go up because it’s an indication that you are a higher risk and may be likely to have another costly claim in the future.

• Change to your risk profile: If your neighborhood has experienced an increase in crime or destructive weather events, your insurer might raise premiums to reflect the higher level of risk.

• Drop in credit: In states where laws don’t prohibit it, insurers may consider your credit-based insurance score in calculating the cost of your policy. Lower credit typically results in higher premiums.

• Coverage changes: Changes you or your insurer make to your policy limits, deductible selections, and optional add-on coverages can also impact your new premium. For instance, if you make notable upgrades to your home or buy expensive jewelry or artwork, you may need to increase your coverage limits, which can trigger a premium increase.

Pro tip: Let your insurance agent know about any renovations you’ve made before renewing. That way, you can make sure you still have enough coverage. In some cases, upgrades might even lower your premium — like if you’ve installed a security system or hurricane windows.

Reasons for home insurance nonrenewal

Just as you have the option to shop around for a new insurance company at the time of your renewal, the insurer also has an option when it comes to your coverage. Though not common, there are instances when an insurer may choose not to renew your policy.

Here are some examples of why a home insurance company may issue a nonrenewal:

• You’ve made too many claims during the current policy period.
• You’ve added a pool, trampoline, or something else that your insurer is unwilling to cover.
• You got a dog and it happens to be on your insurer’s restricted dog breed list.
• The insurer is no longer operating in your area.
• Your aging home has too many liabilities that you haven’t addressed, such as an old roof.
• You live in an area prone to natural disasters, such as hurricanes or wildfires.
• You missed one or more payments during the current term.

Get a quick quote to see what you can save.

Protect your home with coverage that could save you over $980 every year.

When to shop around instead of accepting renewal

Just because you’ve been offered a home insurance renewal doesn’t mean you have to accept it. Though sticking with the same insurer is easier — and may score you a loyalty discount — there are instances when it makes sense to switch to a new home insurance company, like:

• The new premium is too high.
• You want to add a trampoline or swimming pool that your insurer won’t cover.
• You want to adopt a dog breed that your insurer won’t cover.
• You have auto insurance with a different insurer, and you want a bundling discount for purchasing both home and auto from the same company.

How to save money during renewal

The premium your insurer shows you with your renewal offer isn’t necessarily set in stone. Here are some ways you can potentially save money on your home insurance renewal.

Disclose security upgrades

If you made major renovations to your home’s security and safety features, your insurer might lower your premium. Ask your agent if this will reduce your rate; if it will, provide proof of the upgrades.

Rethink your coverage limits

The higher your coverage limits, the higher your premium will be. Make sure your limits reflect the replacement cost of your home rather than its market value. Your insurance should cover the cost of labor and materials to rebuild your home’s physical structure from the ground up — not the price you could sell the property for today (that’s called its market value).

Raise your deductible

The higher your deductible, the lower your premium will be. But a high deductible means you’ll have to pay more out of pocket in the event of a claim. If you have money in an emergency fund that you could use to pay for a higher deductible, you might consider raising your deductible — potentially to the highest level — to reduce your premium.

Ask about discounts

It’s possible that the home insurance renewal quote doesn’t include new discounts for which you’re eligible. Speak with an agent to review potential discounts, and consider switching your auto insurance to the same insurer to enjoy a bundling discount — this typically results in significant savings.

Shop around — or stay

Both looking for a new insurer and staying with your current insurer can have financial benefits. It’s possible you could find a lower premium with another insurer, but it’s also possible that you could qualify for a loyalty discount by staying with your current insurer. Some may increase their loyalty discounts the longer you stay.

How to switch providers at renewal

Sometimes, it makes sense to deny a home insurance renewal offer from your current insurer and instead switch to a new provider. Here’s how to go about that process:

1. Compare quotes. Get a quote from at least three other insurers. You can typically start a quote online, but you might have to call for the most accurate price. Make sure all the coverages and deductibles are the same across insurers to get a true picture of the cheapest option.
2. Choose the right effective date. Once you find a new insurer you like, arrange for the policy to begin the day your current policy expires.
3. Provide cancellation notice. Review your current insurer’s renewal notice to determine how to reject the renewal. You may be able to call an agent or cancel the policy online, but in some cases, the insurer may require a cancellation notice in writing.
4. Contact your lender. If you still have a mortgage loan, you’ll need to notify your lender for two reasons. One, your lender always needs proof of adequate coverage, whether you renew your policy or find a new one. Two, your lender likely pays your home insurance directly through your escrow account, so you’ll need to ensure they pay the right insurance company and calculate the correct escrow amount for your mortgage payment.

Frequently asked questions

What happens if I don’t renew on time?

If you don’t renew your home insurance on time, you will be temporarily uninsured. If your home or property is damaged by a covered risk, or if you’re liable for someone’s injury or property damage, you won’t be financially protected.

Will my mortgage lender be notified of changes?

While an insurer should receive a cancellation notice from your current insurer and a new policy notification from your new insurer, it’s always a good idea to contact your lender yourself to update your home insurance information. You may be able to do this online.

Can I switch insurers midterm?

Yes, you can change insurers in the middle of a policy. If you’ve paid the premium in full, either on your own or through an escrow account, you may be eligible for a prorated refund. However, in some cases, there may be a penalty for early termination of your existing policy, especially if you’re still early in the term.