Gulp + Watchify + Browserify + Handlebars + LiveReload

gistfile1.js

var gulp = require('gulp');
var source = require('vinyl-source-stream');
var watchify = require('watchify');
var livereload = require('gulp-livereload');

var hbsfy = require("hbsfy").configure({
  extensions: ["html"]
});

gulp.task('watch', function() {
	var bundler = watchify('./public/js/app.js');

	bundler.transform(hbsfy);

	bundler.on('update', rebundle);

	function rebundle() {
		return bundler.bundle()
			.pipe(source('bundle.js'))
			.pipe(gulp.dest('./public/dist/js/')).pipe(livereload());
	}

	return rebundle();
});

Does this work if the templates are changed? Can you please confirm? For us it only reloads and rebuilds changes to the .js files.