Home insurers review rebuilding estimates and offer added coverage

Insurance producers give homeowners a written notice about submitting information on home improvements. This applies to producers of homeowners insurance and their policyholders. The notice tells homeowners they may submit the type of improvement and its cost. The notice must be on paper, though producers may allow online responses. Producers must give the notice at least once every two years.

Homeowners insurers use submitted improvement information to reevaluate rebuilding costs and offer added coverage when needed. This applies when an insurer receives information about improvements to the insured home through the notice process. If the home's coverage limit is below the updated estimate, the insurer offers the homeowner a chance to buy enough added coverage to match it. The offer must state the added premium, stay open for 30 days, and be renewed annually. The offer stays open for 30 days and must be renewed each year.

A person who violates these requirements is subject to a $250 fine for each violation. The fine applies to a person who violates the requirements in this part.