When should you update your home insurance policy?
3 Minute Read
Summary
- Major home changes, such as renovations or additions, can affect coverage and should prompt a policy review.
- Increases in property value or high‑value belongings may require updated coverage limits.
- Annual reviews can help ensure your policy continues to reflect your home and lifestyle.
Maybe you finally got around to that kitchen reno or installed a pool—but did you review and update your home insurance policy with each major change or addition to your home?
"If you're doing anything to your home, talk to your insurance agent or broker and advise them of any changes to ensure you're fully protected," says Elliott Silverstein, Director of Government Relations (Insurance).
Updating your policy doesn't necessarily mean you'll end up paying more for your home insurance, Silverstein says. Rather, it will better reflect your current living situation and provide the appropriate amount of coverage should you need to make a claim.
And if you're not sure whether something will impact your coverage, clarification is just a phone call away. "When in doubt, don't assume," he says. "Ask the question." Here are five changes, additions or modifications to your home that warrant a review of your home insurance policy.
Renovations
If you've undertaken a sizeable renovation, such as finishing your basement, it could increase your home's replacement cost in the event of a claim.
A finished basement, updated kitchen, new bathroom, or home addition can significantly increase the cost to rebuild your home after a loss. But unless your policy has been updated, those improvements may not be fully reflected in your coverage.
Even smaller projects, such as new flooring, built‑in cabinetry, upgraded fixtures, or custom finishes, can add meaningful value over time. If you’ve invested in improving your home, reviewing your insurance helps ensure that investment is properly protected.
Pools and hot tubs
While they technically fall under the renovation category, it also comes with new risks, so you may need to consider liability coverage.
Adding a pool or hot tub can make your home more enjoyable, but it can also increase your liability risk. Be sure to call your representative about your particular situation. They can help confirm whether your current policy provides sufficient protection and whether any additional coverage or safety requirements, such as fencing or locking covers, apply.
Increase in property value
If the market value of your property has increased over the years, you may need to increase your coverage to reflect this.
Rising home values don’t just affect resale — they also impact how much it would cost to rebuild your home after a loss. Even if you haven’t renovated, shifting real estate markets, labour costs, and building materials can all drive up replacement costs.
Reviewing your coverage ensures your policy reflects today’s reality, not what your home was worth when you first purchased it.
Adding personal possessions
If you've accumulated high-value possessions, such as jewelry, artwork, furniture, or electronics, you may want them reflected in your policy in the event of damage or loss.
Over time, it’s common to build up more or more valuable belongings without giving your insurance coverage much thought. Some items may have coverage limits or require additional protection to be fully insured.
Taking inventory of your possessions and discussing them with your insurance representative can help ensure everything important to you is properly covered.
Downsizing or retirement
While some people tackled renovations during the pandemic, others downsized, decluttered or even retired.
Major life changes can shift what you actually need from your home insurance. A smaller home, fewer belongings, or a change in how often the house is occupied can all affect your coverage requirements.
You could potentially save money if you're paying for coverage you don't need. A policy review at this stage can help align your insurance with your current lifestyle — and ensure you’re not over‑insuring as your needs evolve.
Policy review
Review your home insurance policy annually to ensure you're fully protected. Book an appointment to speak with a licensed CAA Insurance Agent, even if you're insured elsewhere, for more information.
Property Insurance is underwritten by CAA Insurance Company. Certain conditions, limitations and underwriting guidelines apply.
