Understanding Changes To Your Home Insurance Policy

Soon, you should be receiving your annual homeowner insurance renewal notice with the updated cost for next year’s premium. Even if your Florida homeowner insurance is being paid automatically through your mortgage premium or escrow account, review this notice in full—are there any changes in your coverage, do you need to modify your coverage, or did your premium go up?

Another consideration, especially if you are unsure about any of those questions, is to review this policy notice with your Magruder insurance agent. We can help clarify coverage, answer questions, and help guide you through reviewing your home insurance policy needs, as well as explain a change in cost.

This article will cover some of the more common changes found on a homeowner insurance policy renewal notice—or changes that may need to be made as your home ages or equity in the home grows.

Insurance Policy Inclusion or Exclusion Changes

Each year, insurance companies review their policy inclusions and exclusions and compare them to common claims—then, may make modifications to the policy coverages to accommodate trends. Sometimes, these trends and the subsequent changes are not favorable to homeowners. For example, following a spike in claims after a hurricane hits, some homeowners have seen coverage of fences or other structures (like sheds) go from being included in their policy under their “other structures” coverage to having the covered perils restricted—such as no longer covered against wind, hurricanes, or tornados.

It is important to check for any changes in coverage enacted by your insurance company so you can make appropriate adjustments to ensure coverage when and where you think you’ll most likely need it.

Policy Coverage Limit Increases or Decreases

Whether your insurance company made changes to the policy or not, you should still review your insurance coverage limits and consider whether you should increase or decrease those limits. If your home increased in value (and thus, the cost to cover a rebuild, in the event there is damage, has likely also gone up)—then you should probably consider increasing your policy limit. However, if you removed the shed from your backyard, you may want to lower your “other structures” coverage limit. If you have gotten a pet, then reflecting on your liability or medical payments coverage would be a wise course of action.

Changes you make to your home can affect its value and cost to replace or rebuild, so your insurance limits should appropriately reflect that. Other changes in lifestyle or major life events (like marriage) are also good reasons to review policy limits and make adjustments where necessary.

Policy Premium Increases Significantly

If your homeowner’s insurance policy premium has significantly changed, you may be wondering “Why is my homeowner’s insurance going up?” There are various reasons for this home insurance premium changes, however, the most common is the age of the home or the roof. Older homes can be viewed as a risk for system failures—electrical, plumbing, structural—and system failures can lead to damage. Depending on the circumstances of the failure, an older home may be at an increased risk of filing an insurance claim, thus leading to a higher premium.

If your homeowner’s insurance premium has increased drastically, speak with your home insurance agent to discuss potential reasons and ways to mitigate premium costs or any concerns the insurance company may have. A specialty Insurance Inspection, like a 4-point inspection, roof certification, or wind mitigation inspection may help to lower your premium cost.

Independent Homeowner Insurance Agents in Brandon, FL

Speak with one of our agents if you have any questions or concerns regarding your home insurance coverage, limits, or premium. We can help you better understand your home insurance policy and any changes, as well as help you shop around for other options.


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