Contrary to popular belief, you can change your home insurance company at any time. You don’t have to wait until the policy update date. However, if you switch a company during the policy period, the original insurance company may charge you a cancellation fee. Whether you’re looking for more robust policy options, better customer service, or lower prices, Bankrate’s insurance editorial team will explain what you need to know about switching homeowners’ insurance.
Can I change my home insurance at any time?
You can change your home insurance company at any time, but you need to be intentional about how you do it. If you have changed your homeowner’s insurance company before the end of your policy, you may be charged a cancellation fee. You also need to take special care when you want to enable the new policy. The new policy must start after the date the old policy expires. Compensation disruptions can lead to financial exposure and high home insurance interest rates.
If you are considering switching because you have found an inexpensive home insurance policy, we recommend consulting your current provider before completing the changes. You can always switch homeowners’ insurance, but it may be cost-effective to wait until the insurance renewal date before changing your company.
What information should I collect before comparing homeowners’ insurance estimates?
When getting a home insurance quote, it is important to have the following information in mind:
- Your Personal Information: Name, date of birth, property address, and date to start coverage.
- Home Details: Number of full-time residents and whether it is your primary residence. If it is a secondary or seasonal home, it is the number of weeks occupied per year. You can also create a home inventory.
- Security features: Details of dead bolt locks, fire extinguishers, sprinkler systems, and installed fire or robbery warning systems.
- Building details: The year your home was built, the total area completed, the number of floors, solid fuel equipment, and another building of your property. It also needs to disclose unique features of the property, such as a ground-based swimming pool and tennis courts.
- Insurance History: Claims made in the last five years, latest property insurance provider, and dates for the last coverage period.
- Fire prevention information: Whether your home is outside the city boundaries and the distance to the nearest fire service, how close is your home.
- Additional coverage needs: Certain items, such as home computers and jewelry, that may require higher coverage limits.
- Home loan information: This includes the lender’s official name, mailing address, and mortgage loan number.
How often do I need to change my homeowner’s insurance company?
The answers are different for everyone, but in general, most experts suggest taking a closer look at your policy, at least once a year. This will help you see if it’s the best value for your budget. It is especially appropriate to check the policy if the rate increases when the policy is updated. The insurance company will notify you of the new fee before the policy is renewed. This gives you time to shop for better deals.
I was progressive in Nevada for 10 years. This has a very high insurance rate that has been essentially just continued to climb over the past few renewal periods. I decided to go shopping and had a friend who was an All-State Agent. Their policy is a few hundred dollars lower so we switched from progressive to all-start both car and home insurance, but I streamlined coverage a little better than what I actually need. The transition coverage was seamless and my refund from Progressive was done fairly quickly, but the Home Premium refund was a little slower than the car.
– Ryan Flanigan
Bankrate Credit Card Writer
How to change your home insurance company
It may seem daunting, but changing your home insurance company is actually quite easy. To do so, follow these 7 steps.
1. Compare and consider the advantages and disadvantages of changing your policy
There are many reasons why you might want to know how to switch home insurance. Maybe you want to bundle your home and automation policies for a bigger discount, or you might want to expand your coverage with the offer of a different career approval.
Another common reason to switch may be cost-related. Citations from another provider of the same level of coverage can be significantly lower. However, most insurance professionals recommend that you carefully compare estimates before switching careers. Another carrier’s low citation could be due to lower coverage limits or reduced coverage types. Before switching homeowner insurance companies, we recommend checking the situation with an authorized insurance agent to ensure the coverage you need.
2. Compare ratings and consider your needs
Third-party ratings may help your company determine whether or not it meets your needs. For example, you can look at customer satisfaction ratings from JD Power and the National Insurance Commission (NAIC) complaint index to determine whether a company’s service level is comparable to what you’re looking for.
There are also useful metrics to consider when assessing financial strength. Companies like AM Best and Standard & Poor’s (S&P) assess the historic financial strength of an insurance company and assign each company a unique rating. These assessments may help you gain a sense of the company’s historical ability to pay the claim, especially after catastrophic loss events such as hurricanes, tornadoes and wildfires.
It also helps you think about what you need from a new home insurance you don’t get from your current one. Maybe you need a user-friendly mobile app, a local agent, or a brick and mortar store. Your home insurance can be more than just a price, and considering other factors it can help you make more informed decisions.
3. Compare the current policy with the new policy
Home insurance is specific, detailed and subtle. It’s wise to read both policies side by side before canceling them and signing up for a new one. In some cases, you will see that the new policy you are considering will add coverage or approvals you don’t currently have, in addition to everything your current policy covers. More generally, we discover a trade-off between two policies.
Below are some tips on what to look for when comparing the policies of two homeowners.
- Check policy restrictions: It is a good idea to make sure you are aware of how coverage restrictions will change, especially as real estate insurers have their own way of calculating housing coverage. This calculation will appear in your policy as your coverage amount and will affect several other coverage limits in your policy. It is important to ensure that coverage limits reflect the current replacement cost value of the home.
- Look for exclusions: Terms and conditions may reveal exclusions or risks not covered by the new policy. While most home insurance companies exclude flood and earthquake coverage with standard homeowner insurance, some insurers may have additional exclusions, such as exclusions for certain breeds.
- Please check your approval: Approval (also known as riders) is an add-on that increases or increases coverage. Not all companies offer the same approvals, so you may want to recognize how different it varies between estimates, so you know if you are losing scope or gaining it.
- Compare deductions: Deductible is the amount you agree to pay if you file a claim. It is essentially part of the loss you want to assume. While high deductions can save you on premiums, most insurance experts recommend choosing a deduction that you can almost notify and afford to pay. It is also worth noting that hurricane-prone states have separate deductions for named storm storm damage. Additionally, Tornado Alley has separate deductible wind/hi conditions.
- Check the coverage type: There are several different types of household insurance contracts, each type handles different ways of cover. Getting a coverage estimate of the same type will allow you to compare prices more accurately. For example, if you are comparing the range of replacement costs to actual cash value compensation, you may notice a price difference, but that’s because the compensation types are really different.
Remember that the best home insurance company for one person is not necessarily the best for everyone. The needs vary. Working with an authorized agent will help you find the right one for your situation.
4. Look at the effective dates for your current policy
It is important to check the Homeowner Insurance Declaration page for your current insurance policy to see when coverage ends. Cancelling the old policy before the new policy is started with the new policy can result in coverage being expired. Revocation can result in a higher premium. Worse, if you suffer a loss while coverage expires, you will have to pay 100% from your pocket (and attempting to file a claim retroactively is considered insurance fraud). Additionally, mortgage companies can purchase coverage on behalf of the military, known as insurance, and pass the premiums on monthly mortgage payments.
5. Buy a new policy
Once you find that a new quote works for you, it may be time to buy a new home insurance policy. You will be asked to take effect date for the new policy. You can set the new policy on the same day that the current policy ends. However, most insurance experts recommend cancelling current coverage before the effective date of the new policy. For example, if your current policy ends on June 30th, you can set the effective date for the new policy until June 30th. This prevents duplicate coverage payments and coverage lapses.
6. Notify existing home insurance companies
Once you have started or scheduled a new policy, it may be time to contact your existing home insurance company or agent to cancel your current policy. You may need to provide a cancellation date and you may need to sign a form to approve your cancellation.
If you cancel your policy on the day of your renewal, you may not receive a refund as all premiums were in use. However, if you cancel the medium term, you can get your money back depending on your payment method.
7. Please contact the lender
If you have a mortgage, you need to keep your lender in a loop. If you are paying directly for the homeowner’s insurance, you can call the lender and notify you that you have switched insurance companies. You may need to email your mortgage company a copy of your new homeowner insurance declaration page.
