How can I switch homeowners insurance companies? If you are checking around for a solution to this question, you are in the right place. This article is about how you can easily change your homeowners insurance in a few steps.
Whether you have lived in your home for many years or you are a newer homeowner, your homeowners insurance policy may no longer suit your needs. In this case, know that changing your homeowners insurance is the right answer. By doing so, you may be able to be to lower your premium or find amazing discounts.
One of the best parts is that you don’t have to wait for your policy to end before you can change your insurance company. Although, staying with the same homeowners insurance company has lots of benefits and discounts, there are lots of good reasons to shop around and change companies. It gives you the chance to decrease or increase your coverage amounts and many more.
Why do people change homeowners insurance companies?
You may want to change your homeowners insurance company for different reasons. Some of them include
- Divorce, married, or move to a different location
- Bundle discounts
- Poor customer service
- High premium
- Home improvement
The above are the several reasons to change your homeowners’ insurance provider. You can also switch your insurance company if they go bankrupt.
How to change homeowners insurance
Changing homeowners insurance companies is not a stressful process. All just need to do is follow the below easy steps;
Dig out and understand your current policy
Before you shop around or move to a new home insurance company, make sure you understand your current policy. Know your coverage amounts, annual premiums, effective dates, and deductibles. You can find all this information on the policy declaration page. this is the first page of your policy.
If the declaration page is not available, reach out to your current insurance company and ask for a copy. You may also be able to access it through your online account.
Think and determine your coverage needs
When you are changing your home insurance companies, know the amount of coverage you need. Perhaps, you may be paying for the coverage you don’t even need or paying too much for coverage. Now, it is time to adjust the coverage so you won’t the overpaying.
Shop around and compare different home insurance quotes
When shopping around for a new home insurance company, it is advisable that you compare quotes from 3 different insurance companies. Make sure the quotes have matching limits, coverage, and deductibles. Get insurance quotes from the Best homeowners insurance companies like Allstate, Amica, State Farms, Farmers, Nationwide, and Geico. You can easily get a quote on the official website.
Make the Change
Once you find the policy that suits you, reach out to new the insurer on the website or over the phone. And let them know that you are ready. Make sure you have basic information about your home and old policy. Also, ask about offers and deals that may benefit you. And to a void lapse in coverage, make sure your home is always protected. Most importantly, make sure the new policy starts when the current policy expires.
Cancel your old homeowners insurance policy
Call your current issuer and cancel your policy. Depending on the company, you may need to call your agent to cancel your policy and make your request in writing as well. If the company accepts the cancellation via phone, ask for a letter or email to confirm the cancellation. So that your policy won’t be automatically renewed
Inform your Mortgage Lender
If you have a mortgage, let the lender know about your changing the homeowners insurance company. They may ask you to send them proof ( your new declaration page). this will let them know your policy number and the amount you are paying per year. However, if you own your home, you don’t have to tell or notify anyone about the change.
How to change homeowners insurance with an escrow account
Most people with a mortgage pay their homeowners insurance through an escrow account. Escrow accounts are set up by your home loan lender. And the money that is put in the account goes toward different expenses, including your home insurance premium/
If you want to change homeowners insurance companies and you have this account, the process of changing won’t be too different from the above steps. You just need to give the lender heads up right away. They will check your new policy and make sure they are satisfied with the requirements.
Also, if you cancel in the middle of your term, you should expect a refund check for the unused premiums. Make sure you check with your lender that the future payment made to your escrow account is being paid to the new insurer.
Is it bad to change homeowners insurance?
No, it is not a bad idea. It is a good idea to shop around and compare different homeowners insurance quotes every year. To make sure you are not missing out on a good deal elsewhere.
Can I switch Homeowners insurance anytime?
Yes, you can change homeowners insurance at any time you want. You don’t need to wait for your current policy to expire. You can switch companies after filing a claim with your current provider.
However, after your switch, your old insurance company will still handle your claim, not the new one. The claim will remain with the old homeowner insurance company until it is denied or settled. Note; make sure your review the terms of your current policy, Because you may be subject to a cancellation fee if you cancel midterm. Or you may be eligible for a refund for the remaining months of your policy.
How often can I change my homeowner’s insurance?
You can change your homeowners insurance as often as you like. However, your existing policy may require a penalty if you cancel the midterm. So, it is advisable that you check with your current insurer before changing. To understand if there is any financial benefit to waiting until your renewal date to change companies.
Also, it is recommended that you compare different homeowners insurance when you want to change. The new policy must cover all your needs including your belongings, insufficient limit of your house, and liability companies.