When Do I Need To Renew My Homeowners Insurance Policy?

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Your homeowners insurance generally renews every year automatically as long as you continue to pay your plan's premium. Keep in mind that your premium may change upon renewal and if it increases, you may want to shop around for a new carrier. In some cases, your insurance carrier may even refuse to renew your policy.

Learn more about how home insurance renewals work, why your rate may change and reasons why your carrier might choose to nonrenew your policy.

Key Takeaways

  • Renewing your home insurance means extending the current policy beyond its existing term, which usually lasts a year.
  • Be aware that upon renewal, your home insurance rates might go up, potentially by $100 or more per month.
  • If your insurer decides not to extend your policy after its expiration, this is known as a nonrenewal or being "dropped" by the insurance provider.
  • A nonrenewal might occur if the insurer decides you’re a high-risk policyholder, usually because you are late on your payments or filed too many claims.
  • Typically, there are no specific "renewal fees" associated with home insurance policies.

What Is a Home Insurance Renewal?

A home insurance renewal refers to sticking with your current home insurance carrier for another policy term, typically lasting one year. Most insurance companies will send an insurance renewal notice a few weeks before the end of the current policy period, outlining the new terms, conditions and premium for the upcoming year.[1]

Does Homeowners Insurance Automatically Renew?

When the insurance company sends notice that the policy is due to renew, it should automatically renew for another term unless you want to review your policy and make changes or cancel it.

In other words, if you continue paying your premium, your home insurance policy should renew each year until you decide to switch carriers.

If you request changes in coverages or limits, you'll get an updated policy and premium for approval. If you decide to not renew your policy for another term, its coverage will expire on the policy’s expiration date.

Will My Rates Change When My Home Insurance Renews?

Your home insurance rates may increase when you renew your policy, sometimes by $100 per month or more.[2] Your insurance renewal statement will indicate if your rates for the upcoming year have increased or decreased.

If you see your premium increase, it could be due to one or several reasons. Insurers may request statewide rate hikes to offset the cost of frequent and expensive claims, especially following natural disasters. Another factor could be an increase in your policy's coverage limits, as rates are closely tied to the rebuilding costs of your home, which generally increases over time.

Additionally, a recent claim or a history of multiple claims or, in some states, a considerable drop in your credit score can prompt a rate increase. Finally, the age and condition of your home, including the need for upgrades or repairs, can lead to higher premiums, as older homes or those needing significant work can require more expensive materials and methods for restoration.

On the other hand, you may see a reduction in your premium. This may be possible if you qualify for a new discount, which may happen if you install smart home systems that protect your home or maintain a claims-free history for several years. Some insurance companies may even offer a loyalty discount for remaining a continuous customer to incentivize customers to renew their policies.

Can Insurance Companies Refuse To Renew a Home Insurance Policy?

A nonrenewal occurs when your current insurer chooses not to continue the policy after its expiration, often referred to in the industry as being "dropped" by a carrier. This can happen if an insurer reassesses the risks of covering your home and decides against renewal. This could be due to increases in extreme weather events in your area that make you a higher risk, numerous claims made on your policy or too many late payments.

Insurance providers give one to three months advance notice before policy expiration if they decide to not renew a policy.[2] This notification must include the reason for nonrenewal, allowing policyholders time to discuss options with their agents, seek guidance from their state's insurance bureau or purchase new insurance.

Are There Home Insurance Renewal Fees?

Generally, there are no specific "renewal fees" for home insurance policies. The cost of maintaining your insurance is typically encompassed within the annual premium. However, as we've discussed earlier, your premium may increase upon renewal due to various factors such as changes in your risk profile, claims history or adjustments in the insurance market.

What Should I Ask My Home Insurance Renewal Agent?

When renewing your home insurance, consider the following topics of discussion when speaking with your agent:

  • Cost and discounts: Inquire about any changes in the premium and available discounts, including bundling options. In addition, you can consider increasing your deductible to lower your premium.
  • Limits: You may wish to increase or decrease your limits depending on your situation.
  • Claims process: Understand how to file a home insurance claim and its effect on future premiums.
  • Property changes: If you haven't already, let your agent know of any property changes and assess their impact on coverage.
  • Risk assessments: Consider additional coverage for location-specific risks like floods or earthquakes.
  • Customer support: Confirm how to reach support in emergencies and for general inquiries.

How To Renew Your Home Insurance Policy

To streamline your homeowners insurance renewal, start by reviewing the policy renewal offer to ensure the coverage levels and deductible still meet your needs. Discuss any changes or concerns with your insurance agent and consider additional coverage types like flood insurance if needed. If you opt for policy modifications, you'll receive an updated offer reflecting these changes. If you agree with the policy terms, you simply need to pay your new premium as usual and voila, your policy has been renewed.

How Do I Change Insurance Companies?

If you decide that you want to switch insurance companies instead of renewing with your existing carrier, you will need to contact your carrier and let them know that you are not renewing the policy for another term. After confirming the policy’s end date, you can shop around and compare quotes from at least three to five different carriers. Once you find a new carrier, make sure that your new policy’s start date begins the same date your old policy ends to avoid a lapse in coverage.

Keep in mind that when getting quotes, you will need to supply information about your home’s details, claims history and personal information for each company. Alternatively, you can use SmartFinancial, complete a single questionnaire and get paired with an agent who can match you with the right policy. Get started on your free home insurance quote today.

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Does homeowners insurance expire?

Homeowners insurance policies are typically issued for a fixed term, usually one year.[1] At the end of each term, the policyholder needs to renew the insurance to continue coverage.

Will I be penalized if I don’t renew my home insurance policy?

You won't face direct penalties from the insurer if you do not renew your home insurance policy but you risk significant financial loss in case of damage to your property if you don’t buy new coverage. In addition, if you fail to maintain home insurance, your lender may foreclose on your home.

Why did my home insurance rates go up this year?

Your home insurance rates may have increased due to factors such as rising costs of home repairs and materials, a decrease in your credit score or an increase in the frequency or severity of natural disasters in your area. Additionally, any recent claims you've made or improvements to your property can also affect your insurance rates.

Is a nonrenewal the same as a cancellation?

While similar, a home insurance nonrenewal and cancellation are different. A nonrenewal is when your insurance provider allows your policy term to expire without continuing services while a cancellation is the immediate termination of your coverage before your term ends.


  1. American Family. “Annual Home Insurance Renewal Tips.” Accessed Dec. 28, 2023.
  2. Consumer Financial Protection Bureau. “Consumer Advisory: Take Action When Home Insurance Is Canceled or Costs Surge.” Accessed Dec. 28, 2023.

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