If at any time your home insurance policy no longer fits your needs, you can change it. Read our guide to learn how to switch home insurance companies, what the process looks like, and how to find the best homeowners policy for you.
Why Should I Switch Home Insurance Companies?
Here are a few reasons why you may decide to switch insurance providers:
- Price—If you changed jobs and can no longer afford your current policy, or your insurance company has been increasing home insurance rates year over year, you’ll need a new policy to fit within your budget.
- Bundling—Another reason to switch insurance companies is so that you can purchase your home and auto insurance policies from the same company. This allows you to get a discount on your home insurance for bundling policies and lets you work with a company you already know and trust.
- Coverage needs—Companies have different coverage amounts and endorsement options. If your company’s maximum or minimum coverage is lower or higher than what you want, or if you want an endorsement that your current provider doesn’t offer, you may want to switch to a provider that better fits your insurance coverage needs.
- Customer service—If you filed a claim with your current provider and weren’t pleased with how the claim was handled, you may decide to switch to a new company that has a better track record of approving claims and handling them quickly.
How to Find a New Home Insurance Policy
Follow these steps to find a new home insurance policy:
- Examine your current coverage—Look at your current policy and determine if your coverage amounts still apply to your home protection needs. If they don’t, adjust them accordingly.
- Compare at least three quotes—Consider getting quotes from several insurance companies so that you can compare coverage options and pricing. While most companies will offer standard dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage, they may have different pricing structures and endorsements.
- Read customer reviews—Coverage and price shouldn’t be the only factors you consider. Visit third-party review websites, like the Better Business Bureau and Trustpilot, to see what the customer service experience is like.
- Purchase a policy—Once you find the right company, purchase a policy and set the start date for right before your current policy ends. This ensures that you won’t have a lapse in coverage between when your old policy ends and your new one begins. Note: having a lapse in coverage is a violation of your mortgage agreement.
How to Cancel Your Current Policy
After finding a new policy, here’s how you can cancel your current one:
- Check the declarations page—Check the declarations page of your policy, as this may tell you how to cancel your policy and whether the company charges a cancellation fee.
- Cancel the policy—If the declarations page doesn’t give you cancellation instructions, the fastest way to cancel your policy is to call your local insurance agent or the corporate customer service line. Depending on the company, you may also be able to cancel your policy in the customer portal or mobile app.
- Notify your lender—After cancelling your old policy, inform your mortgage lender of the change. Let them know that you have cancelled your current policy and send them a copy of your new insurance policy so that they have proof of insurance and know where to send insurance payments.
How to Notify Your Current Lender
If you want to switch insurance companies and your down payment is less than 20%, your lender will likely open an escrow account. An escrow account is where your lender stashes part of your monthly mortgage payments. Your lender uses this money to pay property taxes and homeowners insurance bills on your behalf, allowing you to set up an account and not have to worry about any bills besides your mortgage.
If you do have an escrow account, you’ll want to notify your lender when you switch home insurance providers so that they aren’t paying the wrong insurance carrier. Even if you don’t have an escrow account, notify your lender so that they know your home is still protected.
Frequently Asked Questions About Switching Home Insurance
How often should you review your home insurance policy?
You should review your home insurance policy at least once every three years. This allows you to see if your situation has changed enough to warrant a change in your policy.
Can I switch home insurance at any time?
Yes. You can switch your homeowners insurance at the end of the year when your coverage is about to conclude or in the middle of the year.
Is there a cancellation fee for canceling home insurance?
Some insurance companies will charge a cancellation fee. If you pay your home insurance premiums monthly, your old provider will bill you for any cancellation fees. However, if you paid for the entire year upfront, your provider will send you a refund for the number of months you didn’t use with any fees deducted from that amount.
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