Life changes quickly, and your home insurance coverage should keep up. To avoid unexpected insurance gaps, it’s a good idea to review your home insurance policy at least once a year. Over the course of twelve months, many seemingly small changes can affect your insurance coverage. So, if these updates aren’t reflected in your policy, you could face coverage gaps or reduced compensation when filing a claim.
When should you review your home insurance policy in Ontario?
You should review your home insurance policy at least once a year, or whenever there are major life changes or purchases. Completing an annual home insurance review helps ensure your policy accurately reflects your home, belongings and lifestyle.
What does a home insurance review include?
A home insurance review is a yearly check‑in with your insurer or broker to confirm your coverage matches your home’s replacement cost, personal belongings, renovations, and liability risks.
Home Insurance Review Checklist:
- Update your home inventory and new purchases
- Review coverage limits for higher-value items
- Confirm renovations and upgrades are declared
- Check your home’s replacement cost
- Evaluate your personal liability coverage
- Ask about discounts or bundling options
What are the benefits of reviewing your home insurance policy annually?
Reviewing your home insurance policy each year provides peace of mind that your property and belongings are properly protected if something unexpected happens. This protection will be useful in case something unexpected happens, such as a fire, theft, or a weather event. Additionally, a review can also result in a potential reduction in your insurance costs. For example, your broker may discover that you’re eligible for discounts or require less coverage than you did previously.
What happens during an insurance review in Ontario?
During an insurance review, you should evaluate your home insurance (or renters insurance), car insurance and any other policies you have in your name. In just a year, many things can happen. Changes in residence, occupation and schools can force you to pivot and adapt to new circumstances. These life-changing events can happen outside the typical annual policy timeframe. Furthermore, this is why it’s a good idea to take stock of everything that happens during your insurance review.
Common situations where coverage may be needed include:
A policy review can also help reduce insurance costs. Your broker may identify discounts you now qualify for or recommend adjustments to your coverage in response to changes in your lifestyle. It’s also a good idea to review all of your insurance policies together, including:
Home insurance or renters insurance
Auto insurance
Seasonal property insurance
- Umbrella liability coverage
Life events such as moving, renovations, career changes or children leaving for school can all impact your insurance needs.
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What Are the 5 Key Areas to Review in Your Ontario Home Insurance Policy?
1. Your home inventory
Think about the number of expensive items we rely on every day—televisions, smartphones, laptops, gaming systems and appliances. A home inventory list helps ensure your insurance coverage reflects the value of your belongings.
When updating your inventory:
Keep receipts and purchase records.
Take photos or videos of major items.
Record model and serial numbers
Store documentation in a safe digital location
Plus, special occasions such as birthdays, holidays or major sales events often lead to new purchases that increase the value of your belongings. Maintaining an updated home inventory can also make the claims process faster and easier if you ever need to prove ownership of your possessions.
2. Scheduled or high-value items
Many homeowners are surprised to learn that certain valuables have special coverage limits under a standard home insurance policy. Items such as jewelry, bicycles, or collectibles may be covered only up to a specific dollar amount unless they are scheduled separately through an endorsement or an insurance floater.
Common items with coverage limits include:
Musical instruments
Artwork and collectibles
Medical devices such as hearing aids
If you own high-value items—such as engagement rings, luxury watches, or collectibles —you may want to consider additional insurance coverage to ensure they are protected for their full value.
3. Renovations and home upgrades
Home renovations are one of the most common reasons homeowners should update their insurance policy. Some popular upgrades, such as kitchen renovations, finished basements, or outdoor living spaces, can significantly increase your home’s value.
Examples of renovations that can affect insurance include:
Basement finishing projects
Home additions
These upgrades can increase your home’s replacement cost, which may require you to update your coverage limits.
It’s also important that you complete renovations with the proper permits and inspections. If renovations are not disclosed to your insurer and damage occurs later, your claim could affect your coverage or, in some cases, result in a denied claim if your insurer was not informed.
Learn more about how home renovations can affect your insurance here.
4. Your home’s replacement value
Many homeowners ask, “How much is my home worth?” However, home value can be measured in several different ways.
These include:
Market value (what your home could sell for)
Assessed value (used for property taxes)
Replacement cost (cost to rebuild the home)
Actual cash value (replacement cost minus depreciation)
For insurance purposes, replacement cost is usually the most important value because it reflects the cost to rebuild your home after a major loss. Construction costs have increased significantly in recent years, making it even more important to review replacement costs regularly.
5. Personal liability coverage
Personal liability coverage protects you if someone is injured on your property or if you accidentally cause damage to someone else’s property. This becomes especially important if your property includes features such as:
Swimming pools
Hot tubs
Trampolines
Treehouses or playground equipment
Many standard policies start with $100,000 in liability coverage, but experts often recommend at least $300,000 to $1 million or more, depending on your assets and risk exposure. If you have significant assets to protect, an umbrella liability policy may provide additional protection beyond your standard home insurance.
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Did you know that you might need extra home insurance coverage if you have a pool or hot tub? Pools and hot tubs can increase liability risks in your home, and may require higher liability limits or additional endorsements.
Home Insurance Policy Essentials, Explained
When should you update your home insurance policy?
You should review your policy annually, but certain life events should prompt you to update your home insurance coverage right away.
You should contact your insurer or broker if you:
Complete major renovations
Install a pool or hot tub.
Purchase expensive items or collectibles.
Buy a rental or secondary property.
Install security systems or smart-home technology.
Updating your policy when these changes occur can help prevent insurance gaps and ensure your coverage remains accurate.
Does home insurance cover expensive jewelry and electronics?
Standard home insurance policies have coverage limits for high‑value items. Jewelry, collectibles, and electronics may require scheduled coverage.
How often should I review my home insurance policy?
You should review your home insurance policy at least once a year, or immediately after major life changes such as renovations, large purchases, or the installation of a pool.
Can I be underinsured after renovations?
Yes. Some renovations can significantly increase your home’s replacement cost. However, it could potentially leave you with insufficient coverage unless your policy is updated.
Protect your home by closing insurance gaps.
Review your home insurance coverage regularly to help keep you and your family properly protected. By updating your policy each year and notifying your insurer about important changes, you can avoid coverage gaps and ensure your home and belongings remain adequately insured. Additionally, if you’re ready to review your home insurance coverage or want help identifying potential gaps, contact isure today to speak with one of our advisors.
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