Today’s insurance market is a dynamic one, fueled by market fluctuations, technological advancements, and shifting consumer demands. As a result, homeowners may find themselves seeking more comprehensive coverage, lower insurance premiums, or better customer service from their home insurance provider.
You can switch home insurance providers at any time by comparing quotes, purchasing a new policy, and canceling your old one, ideally timed so there's no gap in coverage. Switching home insurance companies is simple, even if you pay your premium through an escrow account, and it typically takes just a few steps to complete.
Homeowners switch insurance companies for a lot of reasons: rising premiums, more comprehensive coverage, poor customer service, or a recent move. Whatever's driving the decision, understanding the full process, including what changes if you pay through an escrow account, helps you avoid a lapse in coverage and get the best deal on your new policy. In this guide, we'll walk you through each step to change homeowners' insurance, from reviewing your current policy to notifying your mortgage lender.
Key takeaways:
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Switching near your renewal date may help you avoid cancellation fees or short-rate penalties, depending on your insurer.
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Before you shop around, review your current coverage, deductible, and premium so you can compare quotes accurately against your existing policy.
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If you pay your homeowners' insurance through an escrow account, you'll need to notify your mortgage company and send them your new policy's declarations page so they can adjust your escrow payments.
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Always confirm your new policy is active before canceling your current one, and ask your old insurer about a refund for any unused premium.
Assessing your current home insurance
Unhappy with your home insurance company? Before switching providers, take stock of your current policy. Consider three key areas: coverage, premium, and customer service. This self-assessment will guide you toward finding a better fit.
Coverage Limits
By reviewing your existing home insurance policy, you’ll have a better understanding of the extent of your coverage, including dwelling coverage, personal property coverage, liability coverage, and any additional coverage options you may have.
Insurance Premiums
Assessing how much you’re paying in insurance premiums can help you determine whether or not your current payments fit into your budget, or if you will need to recalculate based on your financial goals.
It’s important to note that there are variations in insurance premiums across insurance carriers. Shopping purely based on price is not recommended, as in many cases, coverage can dictate premium cost.
For more information on insurance premiums, check out our article “Why is My Homeowners Insurance So High?”
Customer service
The customer experience is increasingly influential to consumers looking for the optimal experience. Evaluate any interactions you’ve had with your current insurance provider’s customer service, including claims experiences, to help determine your overall customer satisfaction.
Why switch your home insurance provider?
There are several reasons why you may want to switch your home insurance provider. Perhaps you’ve encountered dissatisfaction with your current provider’s customer service or claims process. Maybe your home’s value has increased, or the type of coverage you need has changed. It’s also possible you’re seeking more comprehensive coverage options or simply aiming for more affordable premiums. Or, maybe you’ve relocated and need to change providers.
Whatever your reason may be, switching your home insurance provider can provide you with better coverage and potentially save you money in the long run.
When to switch your home insurance provider
The ideal time to initiate a switch in home insurance providers coincides with your current policy’s renewal date. By timing the transition efficiently, you can minimize disruption and ensure continuous coverage.
However, there may be circumstances where you find it necessary to switch providers before the policy renewal date. In such instances, you can still switch insurance providers, but you may have to pay fees as a consequence of terminating the contract prematurely.
How to switch your home insurance provider
Ready to make the switch from your current home insurance provider? Switching your home insurance provider involves a series of steps to terminate your current policy and initiate a new one. Here's what you need to know:
1. Research homeowners insurance providers
Before making the switch, do your research. The ideal provider should meet all your needs: competitive rates, robust coverage options you actually need, and a reputation for customer service and claims handling.
Map your coverage needs
Start by creating a list of desired coverage needs. What kind of dwelling and personal property coverage do you need? Are there any specific add-ons you require? Knowing your priorities will help you compare later.
Compare insurance providers
Research from different providers, and other online resources or your insurance agent can provide valuable information. Review coverage options and don't forget to check out online reviews and financial stability ratings.
2. Compare policies with an independent agent
Once you know what you're looking for, the fastest way to compare real options is to talk to an independent insurance agent. Unlike captive agents, an independent agent can pull quotes and match you with the policy that actually fits your home.
Tell your agent about your home and the coverage you mapped out in step one. The more specific you are with things such as any recent renovations and claims history, the more accurate your quotes will be. Your agent will use these details to shop the market on your behalf and bring back options you can compare side by side.
When you're reviewing quotes, look past the premium. Ask your agent to walk you through the differences in coverage limits, deductibles, and any discounts or bundling options that could bring the price down without cutting corners on protection. A good independent agent will flag trade-offs you might miss on your own, like a lower premium that comes with a much higher wind or hail coverage.
3. Get your new homeowners' insurance policy in place
Before making any changes to your current coverage, carefully review your new policy to make sure the details match what you discussed and that the coverage fits your needs. If anything is unclear, ask questions before signing.
Most importantly, make sure your new policy is active before canceling your existing one. This helps you avoid a gap in coverage and ensures your home stays protected throughout the transition.
4. Say goodbye to your old home insurance provider
After your new policy is active, you can cancel your previous homeowners insurance policy. You can typically do this by calling your insurance company or sending a written notice of cancellation, either directly or through your insurance agent. Before you cancel, ask whether there are any cancellation fees or early termination penalties. Some insurers may charge a fee if you end your policy before the renewal date.
5. Keep your mortgage lender in the loop
If you have a mortgage on your home, your lender will likely require you to maintain home insurance. Be sure to notify them of your new policy and provide them with the necessary information. This usually involves providing them with the new policy declarations page and any necessary paperwork to update their records.
6. Cancel automatic payments for your old policy
Did you have automatic payments set up for your old policy? Don’t forget to cancel them! This will prevent any surprise charges after you’ve switched insurance providers. It's a quick and easy step that could save you unnecessary hassle.
What to compare when switching home insurance
Price is important, but it shouldn't be the only factor when comparing homeowners' insurance quotes. Two policies can look similar on paper yet provide very different levels of protection when it's time to file a claim.
As you compare options with your independent insurance agent, pay attention to:
- Replacement cost coverage. Is the dwelling insured on a replacement-cost basis, and is extended replacement cost available?
- Deductibles. Compare both the standard deductible and any separate wind, hail, or hurricane deductibles that may apply where you live.
- Roof coverage. Some policies pay to fully replace a damaged roof, while others factor in depreciation based on the roof's age.
- Coverage gaps. Check for exclusions related to earthquakes, sewer backup, or other risks that may require separate coverage.
- Optional coverages. Depending on your home, endorsements for water damage, valuable belongings, equipment breakdown, or extended replacement cost may be worth considering.
- Liability protection. Make sure your liability limits reflect your needs and provide enough protection if someone is injured on your property.
- Claims experience. A policy is only as good as the support behind it. Ask about the insurer's claims process and how they'll help if you ever need to use your coverage.
The goal isn't simply to find the lowest premium. It's to choose a policy that gives you the right protection for your home, your belongings, and the way you live.
Switching home insurance when you pay through an escrow account
If you don't pay your home insurance premium directly, there's a good chance it's paid through an escrow account, meaning it's bundled into your monthly mortgage payment and your lender pays the insurer on your behalf. Switching home insurance providers is a little more involved when escrow is part of the picture, but it's still very manageable if you follow a few extra steps.
Contact your lender before you finalize anything
As soon as you've chosen a new insurer, contact your lender and let them know you're switching. Your mortgage company needs the new insurance information on file so they know where to direct your insurance payments going forward.
Send over your declarations page
Your new insurer will provide a declarations page that outlines your coverage limits, deductible, and premium. Send your mortgage servicer the documents it requests, which may include your new policy’s declarations page and confirmation that the previous policy was canceled. Requirements vary, so confirm the process directly with your servicer.
Expect an adjustment to your escrow payments
Once your lender has your new policy on file, they'll adjust your escrow account to reflect the new premium. If your new home insurance costs more or less than your old policy, your monthly mortgage payment may change slightly to account for the difference. This is normal, and your lender can walk you through exactly how the new numbers break down.
Pro tips for a smooth home insurance transition
Here are some tips to help make your transition to a new home insurance provider as smooth as possible:
Start early
Don’t wait until the last minute to switch insurance providers. Start researching new insurance providers before your current policy is up for renewal. This gives you plenty of time to compare options, gather quotes, and make a well-informed decision without being pressured with a looming deadline.
Be honest about your home
When getting quotes or purchasing a new policy, be upfront and honest about your home and any potential risks. This guarantees you get the coverage you need and avoids any issues with claims down the line. Providing accurate information helps the insurer evaluate your home properly and provide a quote that reflects your coverage needs. It may also help prevent complications if you need to file a claim.
Keep records
Keep a record of all communication with both your old and new home insurance providers. This includes emails, letters, and records of any phone calls. It helps you stay organized, track important information, and provide proof of any agreements or changes made.
What to do after changing homeowners' insurance
Congratulations! You've successfully changed home insurance providers. Now, to guarantee a smooth ongoing experience, here's a quick checklist:
- Become a policy pro. Before you file that paperwork away, thoroughly review your new policy. Double-check all your information is correct and that the coverage details match what you signed up for. If you have any questions or concerns, don't hesitate to reach out to your insurance agent or insurance provider for clarification.
- Set up autopay (optional). For peace of mind, consider setting up automatic payments for your premiums. This avoids the risk of late fees and ensures you're always covered. This reduces the risk of a missed payment or late fee that could affect your coverage.
Following the steps outlined in this guide will help you confidently switch your home insurance provider and secure the insurance coverage that best fits your needs. Remember, staying informed and proactive is key to a seamless transition. Now relax, knowing your home is well-protected.
At Openly, we believe switching home insurance providers should be simple. That's why we work through a network of independent insurance agents to help you find coverage that actually fits your home, with the kind of comprehensive protection and responsive claims support that makes switching worth it. Whether you're moving, renovating, or just ready for a better rate, a quick conversation with a local agent can show you what your options look like.
* We provide this information to help you understand insurance. Any coverage is subject to the terms of your policy. Please refer to your policy and declarations page for complete terms, conditions and coverage details.
