Your Homeowners Insurance Might Not Cover What You Think It Does

by Debbie Huscher

When was the last time you reviewed your homeowners insurance policy?

If you can’t remember, you’re certainly not alone.

A recent Harris Poll found that 41% of homeowners hadn’t made any changes to their policies in more than a year. Another 20% said they hadn’t updated their coverage since purchasing their homes.

Most homeowners aren’t intentionally ignoring their insurance. Life gets busy, policies renew automatically, and unless there’s a problem, that paperwork tends to stay tucked away.

But your home—and what it would cost to repair or rebuild it—may have changed considerably since your policy was first written.

The Coverage You Think You Have May Not Be the Coverage You Actually Have

The Hanover Insurance Group’s 2025 Homeowners Coverage Awareness Report found a significant difference between the coverage homeowners know about and the protection they actually carry.

For example:

83% had heard of umbrella insurance, but only 39% had discussed it with an agent.
87% knew additional valuables coverage was available, but only 26% carried it.
46% were aware of cyber coverage, but only 7% had it.

This doesn’t necessarily mean everyone needs these types of coverage. It does show, however, that many homeowners may not fully understand what is—or isn’t—included in their policies.

That’s why a conversation with a trusted insurance professional can be so important.

What Happens When Coverage Falls Short?

The Harris Poll also found that one in three homeowners who had filed a claim said their coverage didn’t fully meet their needs. Among that group, 14% said none of their claim was covered.

Discovering a coverage gap is stressful at any time. Finding out after a pipe bursts, a tree falls on your home, or a storm damages your roof is even worse.

With the cost of labor and building materials increasing over the years, the amount you originally paid for your home may have little to do with what it would cost to rebuild it today.

That distinction matters.

Four Things to Check This Week

Reviewing your policy doesn’t need to become an all-day project. Start by looking at these four areas:

Your dwelling coverage limit
Does it reflect the estimated cost of rebuilding your home today—not simply its purchase price or current market value?
Your endorsements and additional coverage
Look for protection related to jewelry, artwork, water backup, sewer issues, home businesses, pools, finished basements, or other special features.
The date of your last policy review
If it has been more than a year, it may be time for a conversation with your insurance agent.
Changes to your home or lifestyle
Have you added a deck, renovated the kitchen, finished the basement, installed a pool, replaced the roof, started working from home, or made a significant purchase? Your insurance company may need to know.

It’s also smart to confirm your deductible and ask whether your policy covers replacement cost or actual cash value. Those two terms can result in very different claim payments.

Connecticut Homeowners Have a Few Extra Reasons to Review Their Policies

Here in Central Connecticut and Middlesex County, homes come in every age, style, and condition—from historic properties to newer construction.

Older homes may have unique materials or features that are more expensive to reproduce. Finished basements can create additional concerns involving water damage or sewer backup. Pools, detached garages, barns, generators, solar panels, and home offices may also affect your coverage.

And remember: flood damage is generally not covered by a standard homeowners policy. If your property has a potential flood risk, ask your insurance professional whether separate coverage should be considered.

Five Minutes Now Can Prevent a Costly Surprise Later

Your current policy may be perfectly appropriate. The goal of an annual review isn’t to assume something is wrong—it’s to make sure your coverage still reflects the home and life you have today.

As a Realtor, I see how much homeowners invest in their properties over time. Renovations, additions, new systems, and changing construction costs can all affect what it takes to protect that investment.

Take a few minutes this month to review your policy and contact your insurance professional with any questions. It’s a small task that could save you considerable money and stress later.

Sources: The Harris Poll survey reported by Insurance Business America and The Hanover Insurance Group’s 2025 Homeowners Coverage Awareness Report.