How do you switch homeowners insurance? If you’ve been thinking about parting ways with your current home insurance company and you don’t know how to do it, you’ve come to the right place!
Switching from one insurer to another sounds complicated, but it’s actually an effortless process. When you want to move on from your current carrier, you need to make a decision based on facts that support your wish to find a new one.
Below you’ll find a comprehensive guide that explains how simple it is to switch to a new homeowners insurer, what happens if you want to switch after filing a claim, and whether you can change insurance providers at any time.
Switch Your Home Insurance: A Step-By-Step Guide
All types of insurance can be pretty confusing if you’re not a specialist in the field. That’s why I wanted to create a step-by-step guide that will help you learn how to switch your home insurance. Here’s what you should do:
Make Sure It’s The Right Choice
You can’t decide to change your home insurance in a matter of hours. This should be a well-thought-out decision that is based on research.
Some of the insurance companies you’ll be interested in might offer cheaper quotes, but after reading them, you might find out that you’ll be getting less coverage. You don’t want any unknowns when purchasing insurance for your home, which is why you should review all the angles.
Some of the things that should be on your to-research list are limits, exclusions, coverage level, reimbursements for losses, hazard protection, and more.
Find A New Insurance Company
One of the main reasons why people would like to switch their homeowners insurance is because they’re not happy with their current insurance company or they’ve found a company that offers better terms.
Before you decide, spare some time to research different insurance companies and compare their policies, rates, and conditions. You can make a list of pros and cons that will help you make the final decision.
You need to ask for information on their rates, deductibles, types of policies, limits, and more.
Another great way to get the information that you need is through reviews from close friends and family. These are the people you can trust and who will give you their honest opinion based on previous and current experiences.
If your friends and family can’t give you feedback, you can turn to reviews from customers of the companies that you’re interested in. That way you’ll get a general idea of the level of customer satisfaction and the reputation of the company. If it’s a company that is not always available for their clients, maybe it should not be on your list.
Make sure you research the part about paid-out claims very well. Not all online reviews are reliable, but you’ll get a general idea of whether this is an insurer that you want to consider—or not.
Apply For A New Insurance Policy
Once you’ve settled on a carrier, it’s time to apply for your new homeowners insurance policy. You can apply online or over the phone.
When you’re applying online, most companies have websites that offer all the information you need on their home policies, together with premiums.
When talking to an agent, they will require information about your home including the square footage, address, when it was built, and more.
It usually takes between one to three days for the new policy to become active. Set the starting day of your new policy to be the same as your old policy’s ending date if you don’t want to pay any fees.
Notify Your Existing Carrier
Now that you’ve found the best home insurance company for you, it’s time to notify your existing carrier.
You can get in touch with an agent on the phone and let them know that you’re canceling the policy. Don’t forget to be very clear about the date when you want the cancelation to be effective.
Another way to go is to contact them via email, including your policy number, your first and last name, and the location of the insured home. You should let them know that you want to cancel the policy and include the date when you want the cancelation to take place.
If you don’t want to get in touch with your former carrier, the new insurance company can do it and cancel your policy for you.
Notify Your Mortgage Company
If you have a mortgage on your home, you will have to let your mortgage company know that you’re changing your homeowners insurance.
In most cases, you can get in touch via phone and give the company all the information they need. Email and letter are two other ways to notify them.
Although home insurance is not required by law, and you’re the one who decides when to purchase this insurance, most mortgage companies require that you have one before they will approve a loan and throughout the duration of the loan. That’s why they should be notified right away in case you’re changing a provider or canceling a policy.
Can You Change Homeowners Insurance At Any Time?
Yes, you can change your home insurance at any time; however, this change might be accompanied by a fee or a penalty. It all depends on whether your policy is about to expire or if there’s still time until the expiration date.
If the expiration date is coming up soon, the fees will probably be lower. But, if there are months left until the insurance is set to expire, you may face a short rate penalty.
You should read the terms of your home insurance policy to find out how high the fees or penalty will be. Alternatively, you can get in touch with your current carrier and ask for more information.
Although you have a right to change your home insurance at any time, you should think carefully before deciding. In some cases, the benefits you’ll get from the new insurance will justify any fees that you may have to pay.
Can You Change Homeowners Insurance After Making A Claim?
You can change your current home insurance carrier after filing a claim. What you need to know is that the old company will still be handling the claim, even if you found a new insurer. The main reason is that you filed the claim while your home insurance was still handled by your previous provider.
The moment you file a claim with your new insurer, they will be the ones handling it.
How do you change your homeowners insurance? If you haven’t been happy with your current home insurance carrier, you’re probably wondering if changing is an option (it is) and whether the process is complicated.
The short answer is no! You can change your insurance and carrier in a few simple steps that I listed above. Before you make any decisions, though, make sure this is the right decision, research different insurance companies, and go over your current homeowners policy.
Next, you should apply for a new homeowners policy with a plan that works best for you. Don’t forget to contact your current carrier to let them know that you want to cancel your home insurance and tell them the cancelation date. If you have a mortgage on your home, you should also notify the mortgage company.
- You can change your home insurance policy whenever you want and do the whole process in several simple steps.
- When you’re sure that you want to switch to a new carrier, do your research on various insurance companies. When you decide on one, apply for new homeowners insurance, then notify your old insurer and your mortgage company.
- If you switch to a new provider before your old policy expires, you will probably need to pay a short rate penalty.