How often should you shop your homeowners insurance?

A reasonable rhythm

Every two years is a sensible default for comparing equivalent coverage. Long enough that you're not wasting time, short enough that a drifting premium doesn't go unnoticed for a decade.

There are also triggers that justify looking sooner, regardless of when you last checked.

• Your premium rose noticeably at renewal without a claim on your part.
• You replaced the roof, updated wiring or plumbing, or added a monitored security system — all things carriers may price differently.
• You paid off the mortgage, changed carriers on your auto policy, or moved a policy that used to be bundled.
• You removed something that raised your risk profile, such as a pool or a trampoline.
• Your home's rebuild cost has clearly changed and you're not sure the coverage tracked it.

Why premiums rise without a claim

Insurance is priced across a whole book of homes, not just yours. Rising construction and labour costs raise rebuild estimates. Weather losses across a region get spread across everyone in it. Carriers file rate changes that apply broadly.

None of that is personal, and none of it means you're being singled out. It does mean that the carrier that priced your home best five years ago isn't necessarily the one that prices it best today.

Comparing two policies fairly

This is the part that decides whether a quote is a saving or an illusion. A cheaper policy is only cheaper if it covers the same things.

• Dwelling coverage — is the rebuild amount the same, and is it enough?
• Deductible — a higher deductible lowers the premium by moving cost to you at claim time.
• Roof settlement — replacement cost versus actual cash value is one of the biggest hidden differences between two policies that look alike.
• Personal property and loss of use limits.
• Separate wind, hail or hurricane deductibles, which are often a percentage rather than a flat amount.
• Endorsements you rely on — water backup, service line, extended replacement cost.

What a premium difference is actually worth

Once coverage matches, the arithmetic is simple. A $240 annual difference is $20 a month, $720 over three years, $1,200 over five. That's a real number, and it's worth knowing before deciding an hour of phone calls isn't worth it.

But if the cheaper policy carries a $2,500 deductible against your current $1,000, then $1,500 of the difference is risk you've taken on, not money you've saved. That may still be a fine trade if you'd comfortably cover it. It just isn't free.

When shopping isn't worth it

If you compared last year, nothing about the home has changed, and the renewal was flat, you can reasonably skip it. Comparison has a cost in time, and there's no rule that says you must find savings.

It's also worth saying plainly: sometimes you shop, find nothing better, and learn your current policy is well priced. That's a useful result, not a wasted hour.