Millions of Homeowners Skip Policy Audits — How to Decide if Now’s the Time to Review Yours

# Why the average renewal email isn't enough Most homeowners treat insurance renewal notices as routine: a price appears, sometimes higher, and they click through. A recent survey found 41% of policyholders haven't changed coverage in more than a year, and another 20% never changed it after buying the policy. That behavior matters: of those who filed claims, about one in three said their coverage didn't meet expectations and 14% said none of their claim was covered.

# What the numbers mean for your home

Upgrades and changes that commonly create coverage gaps

• Kitchen remodels, finished basements, higher-end materials or fixtures.
• Additions such as decks or accessory structures.
• Significant changes to roofing materials or square footage.

# Common policy pitfalls to check now

• Replacement cost vs actual cash value: If parts of your home or belongings are covered at actual cash value, depreciation will reduce your payout.
• Separate deductibles: Wind or hurricane deductibles can be much higher than your standard deductible.
• Coverage limits shown on the declarations page don't guarantee every part of a loss is covered. Exclusions and endorsements matter.

# A practical audit checklist you can use today

1. 1Ask your agent to rerun the replacement-cost estimate. Confirm square footage, roof type, and stated finishes.
2. 2Compare replacement cost to your last appraisal or the mortgage balance—focus on rebuild, not market value.
3. 3Verify whether key items (roof, appliances, major systems, personal property) are covered at replacement cost or actual cash value.
4. 4Locate any separate deductibles for wind, hurricane, or named-peril coverages.
5. 5List renovations and major purchases since the policy started and add them to the inventory or request endorsements.
6. 6Review exclusions and optional endorsements (e.g., water backup, increased ordinance or law coverage, scheduled personal property).
7. 7If you've had trouble with claims processing or suspect delays, consider shopping different insurers or asking a broker about acceptance rates and claims handling.

# When to do a more thorough review Perform a full audit at least annually and immediately after:

• Major renovations or additions
• A large purchase (expensive electronics, jewelry, artwork)
• A significant weather event in your area
• Filing a claim or moving to a new insurer

# How to use your agent in the audit

# Bottom line Automatic inflation guards help but don't replace a targeted review. If you've remodeled, bought expensive items, or haven't touched your policy in a year, run the replacement-cost number and verify coverage types, deductibles, and exclusions. A short audit now can prevent a costly surprise after a claim.