Insurance companies are requiring policyholders to carry out home improvements in order to maintain insurance coverage. Let me clarify why they're becoming more stringent.
Homeowners Faced with Insurance Requirements for Property Updates
Homeowners across the nation are finding themselves in a new scenario where insurance companies are asking them to make updates or repairs to their properties as a condition for renewing their home insurance policy. This shift is part of a broader risk management strategy by insurers, aimed at reducing the likelihood of future claims and maintaining the insurability of homes [1][2].
Insurers view these requests as essential tools for managing risk, and homeowners must comply to maintain their coverage. Common examples of required changes include replacing outdated or high-risk installations, such as polybutylene plumbing or very old water heaters, fixing hazards like uneven walkways, and adding safety features or removing risky backyard equipment [1][2].
Upon receiving a conditional renewal notice, homeowners are given a choice: complete the required changes, or face a nonrenewal notice when the current term ends. Insurers typically provide ample notice—often at least 30 days before the policy expires—and explain the reasons and required actions [1][2].
One potential consequence of complying with an insurer's request is an increase in insurance premiums due to the loss of customer loyalty discounts or bundling incentives, associated with replacing a roof, for example. Homeowners should consider the long-term financial impact when deciding whether to comply or switch to another insurer [1][2].
The increased focus on risk management by insurance companies stems from mounting losses and rising claims costs, particularly in regions with frequent storm activity and older homes or higher-risk properties [3]. Insurers are re-evaluating the amount of risk they're willing to take on, and homeowners are being asked to play a more active role in protecting their property [4].
Some changes requested by insurers may involve major expenses or difficult trade-offs, such as replacing a roof or upgrading electrical systems. Refusing to comply could lead to a denial of a claim if a loss occurs, or even a nonrenewal notice, limiting future options for home insurance [1][2].
It's important to note that homeowners insurance is not guaranteed and is subject to underwriting guidelines. Expert opinions suggest that homeowners should be proactive in maintaining their properties and addressing any concerns raised by their insurance companies to ensure continued coverage [5].
Chantal M. Roberts, an insurance expert, recently joined our website in March 2025, and her insights provide valuable guidance for homeowners navigating these changing insurance landscapes.
In conclusion, homeowners must be aware of the potential requests from their insurance companies and the reasons behind them. By understanding the risk management strategies employed by insurance companies, homeowners can make informed decisions and take proactive steps to protect their properties and maintain their insurance coverage.
References: [1] Insurance Information Institute. (n.d.). Homeowners Insurance. Retrieved from https://www.iii.org/topic/homeowners-insurance [2] National Association of Insurance Commissioners. (n.d.). Homeowners Insurance. Retrieved from https://www.naic.org/consumer_guides/homeowners_insurance.htm [3] Insurance Journal. (2023, March 1). Insurers Re-Evaluating Older Homes, Higher-Risk Properties, and Regions with Frequent Storm Activity. Retrieved from https://www.insurancejournal.com/news/national/2023/03/01/595385.htm [4] Insurance Journal. (2023, April 1). Insurers Require Policyholders to Play a More Active Role in Risk Management and Loss Control. Retrieved from https://www.insurancejournal.com/news/national/2023/04/01/600015.htm [5] Chantal M. Roberts. (2025, March 15). Navigating the Changing Homeowners Insurance Landscape. Retrieved from https://www.ourwebsite.com/blog/navigating-the-changing-homeowners-insurance-landscape
- Homeowners may need to consider the financial implications of complying with their insurance company's requests, as meeting certain conditions might result in an increase in insurance premiums due to loss of loyalty discounts or bundling incentives.
- Businesses in the finance industry, such as insurance companies, are implementing stricter risk management strategies to reduce potential losses and maintain the insurability of homes, this includes requiring homeowners to make updates or repairs to their properties.
