When to review your home insurance coverage

Your home changes over time. So do the things inside it, the people who live there and the cost to repair or rebuild it. That's why it can be helpful to review your homeowners insurance coverage once a year and after major changes to your home or household. A review gives you a chance to ask questions, talk through what has changed and consider whether your current coverage still fits your situation. Here are some key moments when it may be worth reaching out to your agent.

Before and after a remodel, addition or major home upgrade

Home improvements can affect more than how your space looks or works. Some projects may also change the estimated cost to repair or rebuild your home after a covered loss. Consider contacting your agent before and after updates such as:

• Kitchen or bathroom remodel: Changes to fixtures, cabinets, flooring or appliances can increase your home's estimated replacement cost.
• Finished basement or attic: Converting unused space into livable area may affect your dwelling coverage needs.
• New addition: Adding a bedroom, garage, porch or deck adds square footage and potential replacement value.
• Roof replacement or upgrade: Installing a new roof, especially with impact-resistant materials, may affect both your dwelling coverage needs and your premium.
• Electrical, plumbing or HVAC upgrades: System-level improvements can increase your home's estimated replacement cost.
• Custom features: High-end cabinets, built-ins or flooring upgrades may add more value than a standard estimate reflects.

Notifying your agent when making structural updates to your home is a recommended step, as there may be coverage implications depending on the scope of the work. Once the project is complete, your agent will want to confirm what changed and whether you added any square footage or higher-value materials. Receipts, permits, contractor documents or photos can help make the conversation easier. Your agent may ask what changed, when the project was completed and whether it added square footage or higher-value materials. Receipts, permits, contractor documents or photos can help make the conversation easier.

When adding outdoor features or structures

Some updates happen outside your home but may still matter to your coverage. Consider reviewing your coverage if adding structures such as:

• A pool, hot tub, trampoline or playset: These types of additions come with inherent risks that could affect your liability coverage needs. Some features, like an inground pool, may also affect the amount of coverage you carry.
• A fence: Fencing is a structure that may need to be reflected in your policy.
• A detached garage, shed or workshop: Structures on your property may be covered under your homeowners policy, but adding one is a good time to check whether your current coverage limits still reflect what's on your property.
• Outdoor heating or cooking features: Permanent outdoor installations may affect coverage considerations.
• Solar panels or major exterior upgrades: Large-scale exterior projects may affect your estimated replacement cost.

Your agent can help you talk through what changed and whether your current policy still reflects your property.

After buying higher-value items

Your belongings can change from year to year. New furniture, appliances, electronics, jewelry, collectibles, musical instruments, tools or sports equipment may affect the amount of personal property coverage that makes sense for you. Some types of property may have specific limits under a homeowners policy. If you've purchased higher-value items, ask your agent whether your current coverage reflects what you own today. This is also a good time to update your home inventory. A current inventory can help you keep track of your belongings and may be useful if you ever need to file a claim after a covered loss.

When rebuilding costs change in your area

The cost to rebuild your home is not the same as its market value. Market value is what someone might pay to buy the property. Replacement cost is the estimated cost to repair or rebuild after a covered loss, using similar materials and labor. That cost can change over time. Local labor availability, demand for contractors and the price of construction materials can all affect rebuilding costs. Severe weather can also increase demand for repairs in an area, which may affect labor and material availability.

State Farm suggests you select a coverage amount equal to at least 100% of the estimated replacement cost of your home, but the choice is yours. Insuring to that level may also make you eligible for additional coverage options worth exploring with your agent. If you haven't reviewed your dwelling coverage recently, ask your agent whether your coverage reflects current rebuilding cost estimates.

After a change in your household

Your household can change even when your home stays the same. These changes may affect your personal property, liability needs or policy details. Consider reviewing your coverage after:

• Marriage or divorce: Changes in your household can affect personal property and liability coverage needs.
• A child moving in or out: Including college-age children, whose belongings may or may not be covered away from home.
• A parent or relative moving in: Adding household members may affect your personal property and liability considerations.
• A new pet: Getting a new pet can be a good time to check in with your agent about your liability coverage.
• Starting or ending a home-based business: Standard homeowners policies may not cover business-related losses.
• Renting out all or part of your home: Rental activity may not be covered under a standard homeowners policy.
• Paying off your mortgage: A change in your financial obligations can be a good time to revisit your coverage options.
• Retirement or downsizing: Significant changes to your living situation or assets may mean your current coverage needs adjustment.

It may also be worth checking in if your financial situation has changed in other ways. If your assets have grown, you may want to ask your agent whether your liability coverage still fits your situation. A personal liability umbrella policy could be worth discussing.

When your budget or deductible preferences change

Your deductible is the amount you may pay out of pocket before insurance applies to a covered loss. A deductible that made sense a few years ago may not fit your budget today. During a coverage review, you can ask how different deductible choices may affect your premium and potential out-of-pocket costs. You can also ask about discounts or coverage options that may be relevant to your home and situation. Availability and eligibility may vary by state and policy.

How to prepare for a home insurance review

Going into a review with a few questions ready can make the conversation more useful. Here are some areas to consider:

If it's been a while since your last review, or if any of these changes apply to you, connecting with a State Farm agent is a good next step.