Can a home insurance company raise your coverage level (and therefore the premium) without notifying you first?

Answered by Home Insurance, Car Insurance Expert Savannah on December 25, 2020

One of my friends complained that their insurance company had raised their coverage without notice. What's going on here?

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Savannah

Home Insurance, Car Insurance Expert

Home insurance policies may include an inflation guard. This means that each year, insurers raise policyholders’ coverage by a certain percentage rate; it could be three or four percent, for example. The purpose of an inflation guard is to keep up with the increasing costs of materials and labor over time. If the coverage is increasing, that means the premium is also going up.

Insurers typically notify you 30 days before the policy is set to renew. If your home insurance is included in your mortgage, it can be out of sight, out of mind — but if your home insurance goes up, so do your mortgage payments. It is important to check your home insurance policy every year to make sure you are always getting the best coverage and premium.


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