Spring home insurance review: Coverage gaps to check now

Spring home insurance review: Coverage gaps to check now

The birds are beginning to chirp a little louder, your lawn is greening up from its winter sleep, and the sun is dipping below the horizon a bit later every day: all surefire signs that spring is upon us. You’re eager for this change of season, but is your home? For that matter, is your homeowners' insurance policy ready?

The Insurance Information Institute reports that wind, hail, water damage, and lightning are among the top causes of insurance claims. It’s no surprise that tornadoes, severe storms, and other extreme weather events tend to occur most frequently in the spring. That’s why there’s no time like the present to review and update your home insurance coverage. Because a quick policy review now can prevent unwanted surprises later, TheZebra explains.

Review Your Dwelling Coverage And Property Before Storm Season

Before severe weather strikes, take the time to review your policy and coverage limits.

“Start by confirming that your dwelling limit would realistically rebuild your home at today’s construction costs, with inflation accounted for. Remember, this number is about rebuild cost, not market value,” says Beth Swanson, insurance analyst for TheZebra.

Janet Ruiz, director of strategic communication for the Insurance Information Institute, echoes that advice.

“If you are underinsured, if you’ve added on a new addition to your home, or if you’ve upgraded your electrical, HVAC, or plumbing, let your insurance agent know and be sure you have enough coverage to rebuild and replace your belongings in the event of a loss,” she says.

Now’s a good time to review the age and condition of your roof and determine if repairs or a replacement are needed. If it’s more than 20 years old, your carrier may require an inspection or refuse to cover the property entirely. Even if approved, they might only pay the depreciated value of the roof rather than the full cost of a brand-new replacement.

Next, review your deductible. Note that many policies now use percentage-based wind and hail deductibles. For example, on a $400,000 residence, a 2% deductible means you’ll pay $8,000 out-of-pocket if you experience storm damage.

Spring Storm Damage: What Is And Isn’t Covered

Most standard homeowners insurance policies cover damage caused by fire (including lightning-related fire), wind, hail, fallen trees, and sudden accidental water damage. But they usually don’t cover flooding from rising water, long-term leaks, gradual water intrusion, maintenance issues, pest damage, or wear and tear.

“Heavy spring rain that causes your basement to flood is usually not covered under a standard policy, nor is earthquake damage, which requires a separate policy,” says insurance industry expert Michael Benoit. “Gradual damage is another gray area. If your roof leaks because you neglected roof maintenance for years, your carrier may deny the claim. And if you want flood coverage, you’ll need a separate policy available through FEMA or a private carrier.”

Make time to carefully inspect your shingles, gutters, downspouts, deck, and overall exterior to ensure they’re in good shape. Check that you have proper drainage away from your dwelling and that you’ve trimmed tree limbs and problematic foliage that are close to your dwelling.

“Handling low-lift maintenance items now is going to be much simpler and less stressful than dealing with a potential claim or claim denial later,” Swanson continues.

Can you be dropped because of aerial imagery, like drones or satellites?

Yes. Insurers may use aerial imagery from drones or satellites to spot risks like an aging or damaged roof, overhanging trees, yard debris that raises fire risk, or unapproved structures and additions. In some cases, those findings can lead to a non-renewal if the insurer decides the property is too risky or not properly disclosed. Aerial images are also commonly used after storms to assess widespread damage and speed up claims handling.

Check For Seasonal Coverage Gaps

Springtime is when homeowners tend to make exterior upgrades, like replacing a fence, installing solar panels, building a new shed, creating an outdoor kitchen, or adding a swimming pool. If these projects are in the works, double-check if and to what extent they’ll be covered by your policy.

“Detached structures are usually covered up to a percentage of your dwelling limit, but that default amount may not be enough after making improvements. If you’ve added features that increase risk (like a swimming pool or trampoline), it’s wise to revisit your liability coverage,” suggests Swanson.

Remember that sump pump failures and sewer backups happen more often in these months. Your standard policy won’t cover either unless you add an explicit endorsement.

“My recommendation is to add sewer backup coverage if you don’t have it; check whether your flood risk has changed using FEMA’s flood map tool; and if you’ve done any renovations since your last insurance renewal, get a fresh replacement cost estimate,” Swanson says. “Inflation guard coverage, which automatically adjusts your dwelling limit each year, is also worth adding if your policy doesn’t already include it.”

Update Personal Property And Outdoor Coverage

Most policies only cover outdoor property up to a certain percentage. For example, coverage for outdoor plants and landscaping may be capped at 5% of your total dwelling coverage, or $500 per item, and detached structures like sheds or personal items you take with you from the property may be capped at 10%. Consult with your insurance agent to determine if and to what extent you should increase these limits.

“You’ll want to carefully review your personal property limits if you’ve purchased higher-value items like an e-bike, patio furniture, or other outdoor equipment/accessories,” says Swanson. “It’s also smart to confirm that you have replacement cost coverage, which pays to replace items at today’s prices rather than factoring in depreciation.”

Reassess Liability Before Hosting Season Begins

Excited about hosting your first spring barbecue or pool party? Make sure your liability coverage is sufficient. Swanson recommends at least $300,000 in liability coverage, although $500,000 is even better.

“Most standard policies don’t provide enough protection if someone gets hurt on your property. The Insurance Information Institute puts the average dog bite claim at more than $69,000. If your dog bites a guest and your liability coverage is only $100,000, you’re cutting it close. That’s why you should think about adding a $1 million umbrella policy, which can often cost just a few hundred dollars a year,” adds Benoit.

The Bottom Line

Spring is the time when we shake off the winter dust, enjoy more outdoor activities, and make home improvement plans. But you should also add an insurance review to your checklist, well before Mother Nature shows her violent side.

“Take the time now to perform a checkup with your agent, read your policy online, and be sure you understand your insurance and what it covers or doesn’t cover,” adds Ruiz. Don't be afraid to ask your agent questions if you're not clear about your policy. Remember, it's your policy, and ultimately, you need to understand what's covered in the event of a serious claim.

This story was produced by TheZebra and reviewed and distributed by Stacker.