United States Home Insurance Audit: 41% of Policyholders Haven't Updated Coverage in Over a Year

What percentage of homeowners have neglected to update their insurance coverage? A recent survey found that 41% of home and auto policyholders in the United States had not updated their coverage in over a year, and 20% had never changed it at all. Among those who filed claims, one in three reported that their coverage did not meet expectations, while 14% stated that none of their claim was covered. It's important to note that policies can overlook key risks, as auto-adjusted limits may only rise by 4%-8% yearly, while home remodels and upgrades can significantly increase replacement costs. Homeowners should proactively ask their insurance agents to reassess the home's rebuild estimate and confirm details like square footage, roofing, bathrooms, finishes, and overall construction quality. With 88% of homeowners wanting alerts from their providers and 56% indicating a lack of outreach in over a year, scheduling annual reviews could be crucial for comprehensive coverage.

Understanding these trends can help homeowners ensure their insurance adequately protects against today's rebuilding costs and risks.

For expert guidance on insurance and protecting what matters most, connect with Troy Guerrero, insurance advisor at Farmers Insurance.