Homeowners insurance protects your home, property, and assets from damage and loss. However, many homeowners neglect to reassess their insurance plans even after their coverage needs change, resulting in a coverage gap. Periodically reexamining your homeowners insurance policy is imperative for maintaining sufficient coverage as your needs grow and change.
While each homeowner’s situation is different, these six questions can help you decide if it’s time to update your policy.
1. Have You Updated Your Home?
Homeowners insurance policies reflect the coverage needs of the home at the time the policy was purchased. If you update your home, you should also update your policy to reflect the added value that comes from renovation.
For example, if you add a pool, replace the roof, or increase the square footage by converting the garage into another room, you may need additional insurance coverage. Failing to update a policy after a major renovation or addition can result in a claim denial.
2. Have You Started a Home-Based Business?
Home-based businesses require different coverage than exclusively residential homes. If you run a new business out of your home, such as a therapy clinic or store, your current insurance coverage may not be sufficient. What happens if a customer or client is injured on your property?
Homeowners insurance policies often include protections for guests, but customers are covered differently. Your claim could be denied without amendments to your policy that include home-based business coverage. Equipment, buildings, and assets used for business purposes are also subject to denied claims unless you’ve updated your policy to cover your home business.
3. Has Your Home Value Changed?
With rising home prices and inflation, your original policy limits may no longer cover the new market value of your home. This situation can result in costly coverage gaps if your home is damaged or destroyed. Consider how the rising prices of goods and services will impact your repair costs.
If your policy was valued at $400,000 when you bought it in 2017, the repairs would cost over $523,000 in 2025. The extra $123,000 for the same repairs would be an out-of-pocket expense unless you update your deductible and coverage limits to reflect the growth of your home’s value and increased material costs.
4. Do You Work From Home?
Remote work is different from running a home-based business since the property itself is not registered as a for-profit asset. If you are part of the rising trend of remote and hybrid workers, you may need to reassess your insurance policy for home-based equipment coverage. Remote workers often need office equipment, computers, office chairs, meeting spaces, and other electronics to complete their jobs effectively.
This equipment should be added to your homeowners insurance policy in case of fire, theft, or other damage. In some cases, your homeowners insurance may already cover these assets. Speak with your policy provider to learn whether you need additional coverage for your new equipment.
5. Have Your Financial Means Changed?
For most homeowners, the ideal homeowners insurance coverage strikes a balance between their financial means, the coverage available, and their risk for liability. If your financial situation has changed since you bought your policy, you may wish to re-evaluate this balance.
If you are financially struggling, you may wish to remove unneeded protections to save on your monthly premiums. Alternatively, if you are financially better off, you may wish to purchase additional protections to lower your risk level and your deductible. An experienced insurance advisor can help you determine the ideal balance between cost and coverage in your new situation.
6. Do You Have New Bundling Opportunities?
Insurance bundles provide a common way for homeowners to lower their premiums by bundling their home, auto, boat, or motorcycle coverage into one policy. When you bought your initial homeowners insurance, you may not have been in a position to bundle.
If your situation has changed and you now own a vehicle that is eligible for bundled coverage, it may be time to update your policy. You may be able to save on your monthly premiums by grouping your coverage under one umbrella.
Contact Pro Insurance Group to Update Your Homeowners Insurance
It’s impossible to predict every situation that could warrant a policy update. Homeowners are ultimately responsible for their own coverage needs, which include updating their policies to accommodate home improvements, a home-based business, new assets, and more. However, many homeowners find it difficult to determine whether their policy needs to be updated.
While adequate coverage is invaluable, overpaying for coverage is a real possibility without expert guidance through the update process. Contact Pro Insurance Group today to learn how our experienced team can evaluate your particular situation and customize insurance products to meet your needs. Your current policy may have coverage gaps due to changes in your situation. Our team can spot them before they become costly oversights.