What to Tell Your Insurer, and Why It Matters More Now

A home insurance policy is written against a description of your property: how big it is, what it is built of, who lives there, what is in it. Everything the policy does at claim time is measured against that description.

Properties change. Descriptions do not, unless somebody updates them. The gap that opens between the two is where most underinsurance actually comes from, and it opens quietly.

What actually needs reporting?

The list is shorter and more specific than people expect:

• Renovations, additions, or a finished garage or basement, which move the replacement cost figure
• A new roof, or updated electrical or plumbing, which can affect eligibility as well as price
• Wildfire mitigation work, which under California’s Safer from Wildfires regulation an insurer using wildfire risk in its pricing has to reflect in its filed rates
• A pool, spa or trampoline, which changes the liability exposure
• A dog, particularly a breed the carrier asks about
• Jewelry, art or collectibles above the category sublimit, which need scheduling rather than a higher contents limit
• A business run from the property, or a room let out
• Anyone new living there, or the property standing empty between tenants
• Solar panels, an EV charger or a backup battery

Note that three of those can move the premium down rather than up. Reporting is not only about paying more.

Why does this matter more in California than it used to?

Two reasons, and neither existed in the same form a decade ago.

Replacing a policy is harder than keeping one. Where carriers are declining and non-renewing in brush-exposed areas, a policy you already hold is worth more than it was. An undisclosed change that gives a carrier reason to re-underwrite the risk is a bigger deal when the alternative market is thin.

Reconstruction costs have moved faster than most limits. A dwelling limit set three or four years ago and adjusted only by inflation guard may sit well behind what building actually costs now. Inflation guard is an automatic increase, not an opinion that the figure is sufficient.

The change most worth reporting is often the one that feels least like insurance: the kitchen you redid, the panel you upgraded, the brush you cleared.

None of these take long to report, and the cost of mentioning something unnecessary is a short phone call. The cost of not mentioning it surfaces at claim time, when the policy is read against a property it no longer describes.

We can go through your declarations page against the property as it stands today and tell you where the two have drifted apart. Call the agency at (818) 322-4744 or request a review.

Coverage described here is general. Your own policy and its endorsements determine what applies to you.

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.