What to Check When You Renew Your Home Insurance

Key things to know

1. Read the whole renewal notice, including endorsements and change notices, because terms, limits and sublimits can shift even when the insurer and address stay the same.
2. Since 1 January 2022, FCA rules mean renewing home insurance customers must be quoted no more than a new customer through the same channel.
3. The pricing rules do not guarantee your renewal is the cheapest deal available, so comparing fresh quotes each year is still worthwhile.
4. Recheck your buildings and contents sums insured at renewal, because a figure set years ago can leave you underinsured if you claim.
5. Check excess levels and auto-renewal settings before the renewal deadline, and ask your insurer to explain any changes in writing.

Home insurance renewal papers usually arrive at the worst moment, so most people glance at the premium and file the rest. That is understandable, but a renewal is not just a repeat of last year. Terms, limits, excesses and endorsements can all change, and the details you gave the insurer may no longer match your home. This checklist takes you through the checks worth making before you pay, in the order most people need them.

Read the Renewal Notice Before You File It

The renewal notice is a summary of a new contract, not a receipt. Start with these checks:

• Compare the new schedule with last year’s, line by line. Look at the cover limits, the excesses and any add-ons. If a figure has moved, note it before you go any further.
• Read every change notice and endorsement. An endorsement is an amendment to the policy contract. It can add cover, remove it, exclude certain losses or change a limit, and it can arrive at renewal even when everything else about the policy appears unchanged.
• Watch for sublimits. Some policies cap the amount payable for particular types of loss, such as water damage from a specific source, separately from the main sum insured. A lower sublimit can matter more than a small premium rise.
• Check the property details. Confirm the address, the names on the policy, the year of build and the construction details the insurer holds. Errors in these fields are easy to miss and can cause problems at claim time.
• Note the renewal deadline. You need time to ask questions and, if you want to compare other insurers, time to get quotes. Mark the date the cover lapses if you do nothing.
• Ask for explanations in writing. If anything in the papers is unclear or different from last year, request a written explanation from the insurer before the renewal deadline rather than relying on a phone call you may not remember.

Check Your Sum Insured Still Matches Your Home

The sum insured is the maximum the insurer will pay, and it is the figure most likely to have drifted out of date. Work through this list:

• Check the buildings sum insured still fits your home. This figure needs to describe the property as it stands now. If you are unsure what it should be, ask your insurer how to work it out before you renew.
• Add the cost of any building work. An extension, a converted loft or a new garage all change what the buildings cover needs to do. If any of these happened since the last renewal, the old figure probably needs to rise.
• Account for upgraded fixtures and fittings. A new kitchen or bathroom, especially a high-specification one, can change the level of buildings cover you need, because these are permanent parts of the home.
• Reassess your contents room by room. Add up what it would cost to replace everything new, not second-hand values, and remember lofts, garages and sheds.
• Review any high-value items. Check what the policy terms say about valuables, and think about anything expensive you have bought since the last renewal. Ask the insurer how the terms apply before you pay.

Watch for: If the sum insured no longer matches your home or your belongings, a claim may pay out less than you expect. Recheck the figures at every renewal, not after a loss.

A figure set years ago can fall behind quietly. Our article on underinsurance and why claims fall short explains what that looks like in practice, and our guide to buildings and contents insurance sets out where each policy starts and stops.

Update Your Details and Anything That Changed This Year

Insurers price the risk you describe to them. If the description is out of date, the price and the cover both rest on shaky ground. Ask yourself:

• Has the structure changed? Extensions, roof replacements, rewiring or new plumbing all alter the risk, and some can work in your favour.
• Have security measures changed? New locks, an alarm, cameras or better door security are worth reporting, because they can affect how the risk is assessed.
• Has the household changed? New occupants, a partner moving in, children leaving home or a house share beginning all alter the picture the insurer holds.
• Is the home used differently? If you now work from home more, run a business from the property or let a room, standard home policies may treat this differently. Check the terms rather than assuming.
• Have you added leak or water detection? Devices that sense water can warn you early when a leak begins, and some whole-home systems can pick up abnormal water flow and shut off the supply automatically. They cannot stop every plumbing failure or promise that cover will apply, but catching a leak sooner can stop a small problem spreading.
• Have you had a claim? Claims made during the previous policy period should already be on file, but confirm the record is accurate before you renew.

Compare the Renewal Price Against Fresh Quotes

The rules around renewal pricing changed in your favour, but they did not remove the case for comparing quotes. Here is what to know:

• Renewal prices are capped at new-customer prices. Since 1 January 2022, FCA rules require insurers to quote renewing home and motor customers a price no higher than they would quote a new customer through the same channel. This ended the practice known as price walking, where premiums rise year after year for existing customers.
• The cap is not a promise of the best price. Insurers can still charge different prices through different channels, and other insurers may price your risk more keenly. A renewal that looks fair can still lose to a fresh quote.
• The old loyalty penalty was real. The FCA’s market study found that in 2018, six million loyal home and motor policyholders would have saved £1.2 billion had they paid the average price for their actual risk, and it estimated its remedies would save consumers £4.2 billion over ten years.
• Get at least two or three fresh quotes. Use the same cover levels, sums insured and excesses across each quote, or the comparison is meaningless. Our guide to using comparison sites explains how to do this without falling into common traps, and our article on what the FCA pricing rules mean for renewals covers the rules in more detail.
• Compare the total price, not just the premium line. Ask what taxes, fees or charges sit inside the renewal figure, and use the full amount when you compare. Our guide to insurance premium tax covers one of these components.

If a new quote comes in lower, you can also use it as a negotiating point with your current insurer before you decide.

Review Add-Ons You May No Longer Need

Add-ons are easy to acquire and easier to forget. Renewal is the moment to prune them:

• List every add-on on the policy. Common examples include home emergency cover, legal expenses and accidental damage cover. Note what each one costs as a separate line if the renewal papers show it.
• Check for overlap with other arrangements. Some packaged bank accounts and other products include perks that overlap with policy add-ons. If you pay twice for the same protection, one of the two is a candidate for removal.
• Test each add-on against your situation. Accidental damage cover matters more in a household with children or pets. Home emergency cover matters more if you have no other way to fund an urgent repair. If the answer to “would I buy this again today?” is no, ask to remove it.
• Check what removing an add-on changes. Some add-ons sit alongside the main policy without affecting it, while others are bundled into a product that would be re-priced without them. Ask before you remove rather than after.

Check Excess Levels and Auto-Renewal Settings

Two settings on the renewal notice deserve deliberate attention rather than a passing glance:

• Confirm the compulsory excess. This is the amount you must pay towards any claim, and insurers can set it or raise it at renewal. Compare it with last year’s figure.
• Review any voluntary excess. A voluntary excess is an amount you choose to add on top. Raising it usually lowers the premium, but only do this if you could comfortably pay the combined total if you claimed. Our article on how insurance excesses work explains the difference between compulsory and voluntary amounts.
• Do the maths on a higher voluntary excess. If raising it saves less over a year or two than the extra amount you would pay on a claim, the trade is not worth it.
• Check your auto-renewal setting. The same FCA reforms that capped renewal prices also made it simpler for customers to stop automatic renewal. Decide whether you want the policy to renew automatically, and find the cancellation route now rather than searching for it later.
• Check the payment details. If the card on file has expired, an automatic renewal can fail, which leaves you without cover. Update the details before the renewal date.

When to Switch and How to Move Without a Gap

If a fresh quote beats your renewal on like-for-like terms, switching is straightforward, but the timing matters:

• Switch at renewal where you can. Arrange the new policy to start on the day the old one ends. A single uninsured day is a day a loss would not be covered.
• Do not let the old policy lapse mid-term without checking. Cancelling during the policy period may involve terms set out in your policy documents, so read them or ask the insurer before you act.
• Keep proof of continuous cover. New insurers ask about your claims history and how long you have been insured, so keep old renewal notices and any documents confirming your record.
• Answer claims history questions accurately. If a new insurer asks whether you have claimed, include claims made under a previous policy, not just the one you are leaving.
• Tell your current insurer you are not renewing. Even with easier cancellation rules, you still need to follow the process your insurer sets out. Waiting for the renewal payment to fail is not a safe way to end a policy.
• Recheck the new policy documents on arrival. The same checks from the first section apply to a new insurer: limits, sublimits, excesses and endorsements. Read them before the cover starts.

The concrete next step: put a note in your calendar for a week before your renewal deadline, then work through this checklist against your renewal notice and get two fresh quotes before you decide.

Questions answered

Can my home insurance terms change at renewal?
Yes. A renewal starts a new policy period, and an endorsement can add cover, remove it, exclude certain losses or change a limit. Comparing the new documents against last year’s is the most reliable way to spot the differences.

Is it still worth shopping around now that loyalty penalties are banned?
The FCA rules that took effect on 1 January 2022 stop insurers charging loyal customers more than new customers through the same channel, but they do not make every renewal the cheapest option. Getting fresh quotes from other insurers is still the best way to test the price.

What should I do if I spot a change in my renewal papers I do not understand?
Ask your insurer to explain the difference in writing before the renewal deadline. That gives you a record of what you were told and time to compare alternatives if the change does not suit you.

How do I avoid a gap in cover when switching insurers?
Arrange the new policy so it starts on the day the old one ends, and keep proof of continuous cover. If you decide not to renew, cancel in line with your policy terms rather than simply letting payments stop.