What to Consider When Renewing Your Homeowner’s Policy
Summer is the season for home projects, long-awaited renovations, and backyard gatherings, but before you dive into summer, don’t forget to take a few minutes to review any changes to your home or lifestyle that should be reflected on your homeowner’s insurance policy. As property values and rebuilding costs continue to rise, your annual renewal is more important than ever, and a quick review now can help prevent costly surprises later.
Your homeowner’s insurance renewal should never be treated as just another bill. Coverage should be reviewed every year to make sure it still reflects the true value and condition of your home. Many homeowners are seeing premium increases, but understanding the reasons behind them can help you make informed decisions when renewing your policy.
One of the biggest factors affecting premiums is the rising replacement cost of homes. Inflation, labor shortages, and higher prices for building materials such as lumber, roofing products, and electrical components have significantly increased the cost to repair or rebuild a home after a loss. Insurance companies adjust replacement cost estimates regularly to keep coverage aligned with current construction costs. While this can increase premiums, being underinsured could leave homeowners paying out of pocket after a claim.
Renewal time is the perfect opportunity to review any updates or improvements made to the property during the past year. Renovations such as kitchen or bathroom upgrades, finished basements, additions, or detached structures like garages and sheds may increase the value of the home and should be disclosed to your insurer. A new roof is especially important to report, as it can improve insurability and may qualify for better pricing.
Are your liability limits still appropriate for your lifestyle and assets? You may want to consider and increase if you have added a swimming pool, trampoline or something else that may increase your liability exposure.
Do you have high-value belongings such as jewelry, watches, art or collectables, or firearms that may require additional endorsements or scheduled coverage? There are often special limits of coverage within your homeowner’s policy that may not be enough to adequately cover higher value items.
When comparing renewal options or quotes from different insurers, it is important to compare deductibles carefully. Some policies use an “all perils” deductible that applies to most losses, while others may include separate deductibles for wind or hail damage. A lower premium may not necessarily mean better value if the policy includes higher or separate deductibles that increase out-of-pocket costs during a claim. Always compare policies on an equivalent coverage basis to ensure you are making an accurate comparison.
Homeowners should also ask about discounts for protective devices and smart home technology. Many insurers offer savings for monitored alarm systems, monitored fire protection, motion-detecting security cameras, and automatic water shut-off devices designed to prevent water damage claims. These features can reduce risk and potentially lower premiums.
If you have questions about your homeowner’s insurance renewal or would like a personalized coverage review, contact Amanda or one of the licensed agents at Bolte Insurance Agency at 419-732-3111. Proudly serving the community for 90 years as a family-owned business in downtown Port Clinton, Bolte Insurance is committed to helping homeowners stay properly protected with coverage that fits their needs.
