When you buy a home insurance policy, it’s not a contract for life. If you are unhappy with your current coverage, you can easily switch to a new home insurance company. Before making this move, there are just a few things you need to do beforehand.
The first thing you should do is review your current insurance policy. See when it is scheduled to end as well as if there are any costs for ending your contract early. For example, if you cancel a prepaid policy, some companies give you your unearned premium payments back while others will not. Check to see if it makes more financial sense to cancel the policy or just wait for it to expire.
When you decide to make a move, you can contact your new insurance company and ask them to set up your new policy. You will need to fill out a short application to set up your coverage. When you submit your application, be sure to include your insurance premium as well. You won’t be covered until after the insurance company receives your premium payment.
Once your new policy is up and running, you can cancel your old policy. Call up your old company and tell them you want to end your coverage. They will mail you a document telling you your coverage is over and will also return any money they might owe you. After you finish cancelling your policy, you have finished switching home insurance companies.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Aside from possible restrictions imposed by your lender, changing home insurance companies is quite simple. There are two issues to consider, who is actually paying the premium (frequently the lender through an impound account,) and how does the current insurance company cancel policies (there are two normal techniques, pro-rata and “short-rate.”) It is best to secure coverage with the new company first and then notify the lender or the insurance company directly. Occasionally the losing company will require submission of evidence of insurance from the new company, however, that is easily obtainable. The lender might have a bit of a problem in that they will need to pay the premium on the new policy and that will sometimes come due prior to receiving a refund from the cancelled policy. Work with your lender on this.
Chief Executive Officer, Coastal Homeowners Insurance Solutions, Rocky Point, NY 11778
Typically homeowners insurance is purchased in the voluntary market. You will pay a Per Diem rate on coverage used. The remaining portion will be refunded to you. You are free to search the market at any point and switch insurance companies. Always check with your lender (if you have one) and your local independent insurance agent for advice specific to your situation
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The first thing you should do is review your current insurance policy. See when it is scheduled to end as well as if there are any costs for ending your contract early. For example, if you cancel a prepaid policy, some companies give you your unearned premium payments back while others will not. Check to see if it makes more financial sense to cancel the policy or just wait for it to expire.
When you decide to make a move, you can contact your new insurance company and ask them to set up your new policy. You will need to fill out a short application to set up your coverage. When you submit your application, be sure to include your insurance premium as well. You won’t be covered until after the insurance company receives your premium payment.
Once your new policy is up and running, you can cancel your old policy. Call up your old company and tell them you want to end your coverage. They will mail you a document telling you your coverage is over and will also return any money they might owe you. After you finish cancelling your policy, you have finished switching home insurance companies.