Maybe you had a less-than-stellar customer service experience. Or maybe you discovered that some of your greatest concerns aren’t addressed by your policy. Whatever the reason, you’ve decided it’s time to figure out how to change your homeowners insurance.
If you find yourself dissatisfied with your current home insurance, not to worry. You can change your home insurance coverage at any time for any reason – and the process is pretty simple.
6 steps to change homeowners insurance
Ultimately, the process of changing homeowners insurance is simple. You first need to find a new policy, which requires a little effort on your part. Once you’ve chosen, paid for, and bound your new coverage, you can cancel your previous policy, collect any premium refund due to you, and notify your lender of the change.
Let’s take a closer look at each of these steps.
Review your existing policy
The first thing to do is check your existing policy. Take note of your coverage types, coverage amounts, exclusions, and deductibles as well as any endorsements you’ve added. On the one hand, this information helps you compare quotes when you start shopping for a new policy. But it also gives you a chance to decide if your coverages and limits are still adequate or whether your insurance needs have changed.
Shop around
After you’ve decided on how much home insurance you need, start getting quotes from several providers who offer coverage in your area. There are a couple of ways you can do this. Some insurance companies offer online applications that provide near-instant quotes or a phone call to discuss your insurance needs. Others have you work with their agents, which usually means going to a brick-and-mortar office. A third option is to get in touch with an independent agent who can get you quotes from several insurance providers.
Choose a policy
Once you have quotes from multiple insurance companies, take time to compare the offers. You’ll want to consider the premium while also looking at policy details, such as:
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Coverage amounts.
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Covered perils.
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Exclusions.
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Deductible amounts.
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Endorsements.
Understanding what’s included in (and excluded from) your coverage can give you a better idea if the quoted premium represents coverage that actually fits your situation.
Bind coverage
When you’ve decided which policy is right for you, the next step is to bind your policy with your new insurer. Typically, that means signing your application and making your first payment, but you may also be asked to send in some additional documents such as:
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Proof of prior insurance.
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Evidence of safety features like burglar alarms or sprinkler systems.
Depending on your state, your new insurance company may continue to review your coverage even after you’ve bound your policy during the underwriting discovery period. This could result in some adjustment to your premium, or your insurer may ask you to make repairs or get another inspection before settling on your final premium.
Cancel your old policy
Once everything is set with your new policy, you can go ahead and cancel your previous policy. You can usually call your insurance company and give it a cancellation date, but some insurers may ask for written notice. Even if you can just call, be sure to ask for written confirmation that your policy has been canceled.
Some insurers charge a cancellation fee if you change your home insurance before your policy’s expiration date. But if you have remaining premium, that fee could be taken out of your premium refund.
Notify your mortgage servicer (if you have a mortgage)
The last thing you need to do in order to change your home insurance is alert your loan servicer of the change in your coverage. More often than not, your new insurance company will be happy to let your mortgage lender know.
If you’d rather handle this yourself, you need to send your lender a copy of your new policy documents as well as the signed cancellation of your old coverage. Your loan servicer can then adjust your escrow account (if you have insurance premiums escrowed as part of your monthly mortgage payment) and make sure the right carrier gets paid when premiums are owed.
Can you change homeowners insurance at any time?
As a homeowner, you have the right to change your home insurance at any time and for any reason. If you have a mortgage or live in a condo or other restricted community, you may be required to list your lender or other parties as additional insureds on your new policy and to provide them with copies of new policy documents. But legally you’re always allowed to change home insurance.
How often should I change homeowners insurance?
Whether or how often you should change home insurance totally depends on how satisfied you are with your provider, your coverage, and your rate. If you’re happy with all of these items, you may not need to switch for years. You can simply let your policy auto-renew.
If, on the other hand, you find that your home insurance rates rise quickly from year to year, or your coverage needs change regularly, you may want to change policies more often – perhaps every year or two.
All that said, you really should review your policy when it’s time to renew your coverage to make sure you have the right amount of protection and your policy is still accurately priced. This may include comparing quotes from other insurance companies to see if you can get similar coverage at a more affordable premium.
What happens if your home insurance is nonrenewed or canceled?
Sometimes you have no choice but to change your home insurance because you’ve been nonrenewed or canceled. Being nonrenewed simply means that your insurance company has decided not to continue coverage at the end of your policy term.
On the other hand, your insurer can cancel your policy before its expiration date. That usually only happens if you’ve failed to pay your premium or your insurer uncovers fraud, although some policies get canceled during the discovery period if the underwriter finds a major change in your risk profile.
For nonrenewals and cancellations, your insurance company needs to provide at least the minimum number of days of notice required by your state so you have time to shop for a new policy.