How To Switch Homeowners Insurance?

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    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    If you decide to cancel your existing homeowners policy and purchase coverage with another company there are some simple steps to follow.  The company that will assume coverage should issue a binder or evidence of insurance.  You should send a copy of that to the mortgage holder, if there is one.  You should provide your former company with a cancellation notice, either formally or informally.  Under most circumstances the previous insurance company will charge a pro-rata cancellation, charging you only for the days that they provided coverage.  The new policy has a start date which will normally be the anniversary of future renewals.  The lender though is the key and must know what is happening.  You have an obligation to keep the property covered and they have a right to secure coverage if they discover that there was any period during which there wasn’t the prescribed coverage.
    Answered on March 17, 2014
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