Before Your Home Insurance Renews, Check This First

One thing I always tell my buyer clients is to get homeowners insurance quotes before closing. Your homeowners insurance is part of the cost of owning the home, and if your mortgage includes escrow, it can also affect your monthly payment.

I also remind clients that they are not necessarily locked into that same insurance company forever. You can shop your homeowners insurance again later, and in many cases, you can change your policy even after you already own the home.

But here is the honest part.

As homeowners, we often forget to go back and review it.

Life gets busy. The policy renews. The premium gets paid through escrow. And unless we are really paying attention, we may not realize how much the cost has changed until our mortgage payment goes up.

That is exactly what made me take a closer look at my own policy.

I recently received my homeowners insurance renewal, and I could tell it seemed higher. But I could not immediately tell how much higher because I had not been tracking each policy side by side.

So I did something simple that I now think every homeowner should do.

I searched my email for my previous homeowners insurance policies since moving into this home in 2024. Then I put the renewal dates, premiums, dwelling coverage, personal liability, personal property coverage, medical payments, and deductibles into a spreadsheet.

Once I saw everything in one place, the difference was much clearer.

My Home Insurance Premium Had Changed More Than I Realized

My 2024 policy premium was $2,493, plus a $25 membership fee.

My 2026 renewal was $3,181.

That is a noticeable increase, especially when you remember that homeowners insurance is often paid through your mortgage escrow account.

Here is what the change looked like:

Policy Year / Quote	Annual Premium	Difference From 2024 Policy
2024 Policy	$2,493
2026 Renewal	$3,181	+$688
New Quote	$2,216	-$277 from 2024 / -$965 from renewal

The new home insurance quote came in at $2,216.

Compared to the $3,181 renewal, that is a difference of $965 per year, or about $80 per month when you break it down across 12 months.

Now, that does not mean everyone will get the same result. It also does not mean the cheapest quote is always the best quote.

Coverage matters.

But it was a reminder that I needed to review the policy instead of just letting it renew without question.

Why This Matters for Your Mortgage Payment

If your mortgage payment includes escrow, your mortgage company is usually collecting money each month to pay things like:

• Property taxes
• Homeowners insurance
• Sometimes mortgage insurance, depending on your loan

So when your taxes or insurance go up, your total monthly mortgage payment can go up too.

Even if your interest rate has not changed.

Even if your principal and interest payment has not changed.

That is why this matters.

We recently had an escrow increase because of property taxes, and that already increased our mortgage payment. If my homeowners insurance renewal stayed at the higher amount, it could have caused another increase during the next escrow analysis.

And that is the part many homeowners do not realize until the mortgage company sends the updated payment notice.

Do Not Just Compare the Premium

When you are reviewing your homeowners insurance, it is easy to look at the premium first.

That is important, but it is not the only thing you should compare.

You also want to review:

• Dwelling coverage
• Personal property coverage
• Personal liability coverage
• Medical payments coverage
• Deductibles
• Wind, hail, or other special deductibles
• Any exclusions or coverage changes
• Whether the policy is bundled with auto insurance

A lower premium may look good at first, but if the coverage is significantly lower, it may not actually be the better option.

The goal is not just to find the cheapest policy.

The goal is to understand what you are paying for and make sure the coverage still makes sense for your home.

Step 1: Pull Your Current Renewal Notice

Start with your current homeowners insurance renewal.

Look for the main details, including:

• Annual premium
• Renewal date
• Dwelling coverage
• Personal property coverage
• Liability coverage
• Medical payments coverage
• Deductible
• Any special deductibles

Do not just look at the monthly amount.

You want to understand the full annual cost because that is what your mortgage company may be using when they calculate your escrow.

Step 2: Find Your Previous Policies

Next, search your email for your prior homeowners insurance policies or declarations pages.

A few search terms that may help:

• Homeowners insurance
• Renewal
• Policy declaration
• Declarations page
• Insurance policy
• Your insurance company’s name

Once you find them, put each year into a spreadsheet so you can see the changes side by side.

This is what helped me the most. I could finally see how the premium and coverage changed from year to year.

Step 3: Compare the Premium and the Coverage

Once you have the policies in one place, compare them carefully.

You may notice that:

• Your premium increased
• Your dwelling coverage changed
• Your personal property coverage changed
• Your deductible changed
• Your liability coverage changed
• A discount was removed
• A fee was added
• The policy structure changed

This is where the numbers start to make more sense.

Sometimes the premium increases because coverage increased. Sometimes it increases because insurance costs in general have gone up. And sometimes it may be worth shopping around to see if another company can offer a better fit.

Step 4: Get New Quotes Before the Renewal Date

Do not wait until the last minute.

If your renewal is coming up, reach out to your insurance agent or get quotes from a few different companies.

Ask them to quote the homeowners insurance, but also ask about auto insurance if you want to compare whether bundling makes sense.

When requesting quotes, try to compare similar coverage so you are not looking at two completely different policies.

Ask questions like:

• Is the dwelling coverage similar?
• Is the deductible the same?
• Are there separate deductibles for wind or hail?
• Is personal liability coverage the same?
• Are there any exclusions I should know about?
• Is this quote bundled with auto insurance?
• Are there discounts I qualify for?

Again, the cheapest quote is not always the best quote. But you will not know your options unless you review them.

Step 5: If You Switch, Send the New Policy to Your Mortgage Company

If your homeowners insurance is paid through escrow, your mortgage company needs the updated policy information.

Your new insurance agent may be able to send the declarations page directly to your mortgage company. If not, you may need to upload it through your mortgage servicer’s website.

This step is important because your mortgage company needs to know which policy to pay.

You do not want them paying the old policy if you have already switched to a new one.

Step 6: Cancel the Old Policy

This part is very important.

Once the new policy is active, make sure the old policy gets canceled.

Do not assume it happens automatically.

You may need to call the old insurance company or submit a cancellation request in writing. Ask for confirmation that the policy has been canceled and keep that confirmation for your records.

If your mortgage company already paid the old policy from escrow, canceling it may create a refund from the old insurance company.

Step 7: Do Not Treat the Refund Like Free Money

If you receive a refund check from the old insurance company, remember where that money likely came from.

If your mortgage company paid the old policy from your escrow account, that refund belongs back in your escrow account.

It may feel like extra money when the check arrives, but it is not really free money.

If you keep it, your escrow account could show a shortage later. That shortage could cause your mortgage payment to increase when your next escrow analysis is completed.

For me, the process was simple.

I could log into my mortgage account, go to the payment options, and choose to apply the payment to escrow only.

Your mortgage servicer may label it differently, so check your account or call them if you are unsure.

Step 8: Keep a Record of Everything

After you switch policies, save a copy of:

• The new policy
• The declarations page
• The cancellation confirmation from the old policy
• Any refund amount received
• Proof that the refund was sent back to escrow
• Any messages from your mortgage company

This helps you stay organized if your mortgage payment changes later or if your escrow analysis does not look right.

Homeownership Is More Than Getting the Keys

Homeownership is not just about getting the keys.

It is also about learning how to manage the ongoing costs that come with owning the home.

Insurance, taxes, and escrow are not always exciting topics, but they can directly affect your monthly payment.

A quick review before your policy renews could save you money and help you avoid surprises later.

If you have not reviewed your homeowners insurance in a while, this is a good time to pull your policy, compare your coverage, and get a few quotes before your next renewal.

Before your policy renews, take a few minutes to review the numbers.

[Download the Home Insurance Review Spreadsheet here] and use it to compare your coverage, premium, and any new quotes you receive.

And if you need a recommendation for an insurance agent, feel free to reach out. I’m happy to connect you with someone who can help you review your options.