Can I Change My Homeowners Insurance at Any Time?

Homeowners insurance protects dwellings and personal belongings against various perils, while also providing liability coverage. It is generally possible to change homeowners insurance at any time, allowing policyholders to seek different coverage or rates.

Flexibility in Changing Your Policy

Homeowners can typically change their insurance policies at any time, even before their current policy term concludes. Some insurers may impose a cancellation fee if a policy is terminated mid-term, though these are less common for homeowners insurance. Checking the existing policy’s terms is advisable.

Policyholders who cancel coverage before its expiration date are usually entitled to a pro-rated refund for the unused premium. If the policy was paid in full upfront, a refund is expected. Monthly payments might result in little to no refund depending on the timing of cancellation. Secure a new policy before canceling the existing one to avoid any lapse in coverage, which could leave the home unprotected.

Key Considerations Before Making a Change

Before changing homeowners insurance, gather specific information for accurate quotes. Collect details about current coverage, including dwelling, personal property, liability, and loss of use limits, plus existing deductibles. Information about the home’s construction type, age, square footage, and features like a pool or security system is also needed. A claims history and mortgage lender information are essential for prospective insurers.

Several factors influence new policy quotes. The home’s location, including its ZIP code and proximity to fire services, can significantly affect premiums, especially in areas prone to natural disasters or high crime rates. The age of the home and its major systems like roofing, plumbing, and electrical components also play a role, with older homes often incurring higher costs. The homeowner’s claims history, credit score, and presence of safety devices like security systems or sprinklers, can also impact premium calculations.

When comparing policy quotes, an “apples-to-apples” approach ensures a fair assessment. Match coverage types and limits across all quotes, including dwelling coverage for rebuilding costs, personal property coverage for belongings, and liability limits. Deductibles, the out-of-pocket amounts paid before coverage begins, should also be compared. Homeowners insurance typically involves fixed-dollar deductibles ($500 to $2,000) or percentage-based deductibles (1% to 10% of the home’s insured value), especially for perils like wind or hail.

The Process of Changing Your Policy

Once a new policy is selected, secure the new coverage. This requires submitting an application and making the initial payment to activate the policy. Ensure the new policy is in force with a clear effective date. The new insurer often sends the declarations page to the mortgage lender.

Timing the switch carefully prevents gaps in coverage. The new policy should be activated on or before the old policy’s cancellation date. This ensures continuous property protection and avoids issues like a mortgage lender force-placing more expensive coverage due to a lapse. Many experts advise setting the new policy’s effective date to coincide with the old policy’s expiration date.

Cancel the previous policy by notifying the current insurer. This can often be done over the phone, though some companies may require a written request. Confirm the cancellation date and inquire about any expected pro-rated refund for premiums paid in advance. If a refund is due, it typically takes 7 to 30 days for the insurer to process it.

Notifying the mortgage lender about the insurance change is mandatory, especially if premiums are paid through an escrow account. Homeowners should provide their lender with the new policy’s declarations page, including the insurer’s name, policy number, and coverage details. Lenders have a financial interest in the property and need to ensure adequate coverage. Prompt notification avoids confusion and ensures future premium payments from escrow are directed to the correct insurer.