Can You Change Homeowners Insurance at Any Time?
Updated: July 10, 2024
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You can change homeowners insurance whenever you find it necessary during your policy term. This opportunity allows you to reassess your coverage needs and potentially secure better terms. Knowing the right time to switch helps you avoid penalties and maintain uninterrupted coverage. Learn about the appropriate moments and steps for changing your homeowners insurance provider.
Changing homeowners insurance during your policy term is possible, allowing for adjustments when better rates or coverage become available.
Be aware that some insurers may charge cancellation fees or penalties if you switch before the end of your policy term.
If you have an escrow account, you must notify your mortgage lender when changing your homeowners insurance provider.
Changing home insurance providers can be done at any point during your policy term — whether it’s six or 11 months in. You should check the fine print before canceling your policy since some insurers may impose cancellation fees or penalties based on your existing policy terms. If you’re nearing the end of your policy’s term, it might be best to wait for the term to end before switching home insurance providers.
You can change your homeowners insurance provider with an escrow account. The key is to notify your mortgage lender about the switch, as they handle the payments through the escrow account. Start by finding a new insurance policy that meets your needs and obtain a declarations page from the new insurer. Then, inform your mortgage lender of the new policy and provide the necessary documentation.
Next, confirm with your lender that they will make payments to the new insurer from your escrow account. They will need to update their records to reflect the change. It's essential to coordinate the effective date of the new policy to ensure there are no gaps in coverage. Notify your old insurance provider to cancel the existing policy once the new one is active, and check if any refunds for prepaid premiums are due.
Changing your homeowners insurance provider may be appropriate during policy renewal, after significant life changes or when better rates or coverage options become available. Recognizing these times is crucial because it ensures you have adequate protection and can save money. Regularly reviewing your insurance needs and the market offerings can help you prevent lapses in coverage, save money and have peace of mind.
Here’s when it’s best to consider switching your homeowners insurance provider:
Policy Renewal
Reviewing your policy at renewal time allows you to assess whether it still meets your needs. This is an ideal time to switch home insurance if you find better rates or coverage with another provider.
Significant Life Changes
Events such as marriage, divorce or home renovations can alter your insurance needs. Changing home insurance during these times ensures that your policy reflects your current circumstances.
Better Rates or Coverage Options
Regularly shopping around can reveal more affordable rates or superior coverage options. Switching home insurance providers when you find a better deal can lead to significant savings and improved protection.
Poor Customer Service
If your current insurer provides unsatisfactory customer service, it may be time to consider changing home insurance providers. The best homeowners insurance provider can balance good customer service and affordability, the former of which is vital for efficient claims processing and overall satisfaction.
Switching your home insurance involves reviewing your current policy, shopping for new quotes, securing a new policy and notifying your lender. Understanding your existing coverage and any associated fees is crucial before making a change, and comparing quotes from multiple insurers can help you find a policy that better suits your needs and budget. This, combined with proper timing and coordination, ensures a smooth transition between coverages.
Take a look at the steps to changing your home insurance below:
Take time to understand the details of your current home insurance policy. Look at the coverage limits, deductibles and any exclusions. Additionally, check for any cancellation fees or penalties that may apply if you decide to switch before your policy term ends.
Consider your reasons for wanting to switch. Whether it's due to high premiums, poor customer service or inadequate coverage, make sure that changing home insurance providers will address these issues. Assess if the potential benefits outweigh the costs and hassle of switching.
Plan the timing of your switch carefully to avoid any gaps in coverage. It's often best to switch near your renewal date, but if you find a significantly better deal, it might be worth switching home insurance earlier. Ensuring continuous coverage is crucial to avoid any periods where your home might be unprotected.
Collect all necessary information about your home and current insurance policy. This includes details such as the home's age, construction type and any security features. Having this information ready will help you get accurate quotes from potential new insurers.
Get homeowners insurance quotes from various companies to compare coverage options and prices. Make sure to use the same coverage limits and deductibles for each quote to ensure a fair comparison. Consider both well-known national insurers and local companies to find the best fit for your needs.
Evaluate the quotes you've received and compare the coverage details, premiums and customer reviews. Consider factors such as the insurer's financial stability and customer service reputation. Narrow down your options to the top contenders that offer the best value.
Once you have chosen a new insurance provider, purchase the new policy. Ensure that the new policy's start date overlaps with your current policy's end date. This step is crucial to prevent any lapse in coverage.
Contact your current insurer to cancel your existing home insurance policy. Confirm the cancellation in writing and request a refund for any unused premium. Keep a record of all correspondence and confirmations for your records.
If you have a mortgage, inform your lender of your new insurance policy and provide them with all the necessary documentation to update their records. This will ensure that your lender continues to pay your insurance premiums from your escrow account without any issues.
Changing homeowners insurance can be done at any time, but it's essential to understand the process and implications involved. Whether you are looking for better rates, improved coverage or simply a change in service, knowing the answers to common questions can help guide your decision. Below are some frequently asked questions to help you navigate the process of switching homeowners insurance providers effectively.
Yes, you can switch homeowners insurance providers at any time. However, it's important to consider potential cancellation fees and ensure there is no lapse in coverage when making the switch.
Some insurers may charge cancellation fees if you terminate your policy before the term ends. It's essential to review your current policy's terms and conditions to understand any potential financial implications.
To avoid a lapse in coverage, make sure your new policy starts before or on the same day your current policy ends. Coordinate the effective dates of both policies carefully.
Yes, if you have a mortgage, you must inform your lender of the change. Provide them with the new policy details so they can update their records and continue to make payments from your escrow account.
To cancel your current policy, contact your insurer and request the cancellation in writing. Confirm the cancellation date and ask for a refund of any unused premiums. Make sure your new policy is active before finalizing the cancellation.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
