How to switch home insurance

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Switching homeowners insurance companies is easy, but it’s important to shop around and choose the right policy first. Start by reviewing your current policy, then request quotes from multiple companies for comparison. Once you make a choice, all you have to do is start the new one and cancel the old one.

There are a lot of things to consider when you’re considering changing home insurance. Price may be top on your list, but make sure you look at all of the pros and cons and carefully review your options before you switch home insurance companies. Make sure to examine the new policy options carefully.

“The homeowner will want to know the difference between the new policy and old policy; if the agent says both policies are the same, probably use someone else as two different companies almost certainly do not operate exactly the same,” says Zack Pope, agency manager at David Pope Insurance in Missouri. 

How to switch home insurance

Changing your home insurance company is easy, but to make the best choice and avoid a lapse in insurance coverage, it’s important to follow these steps.

1. Review your current policy.

Start with the coverage you already have. Review all of the coverage levels and options you have selected to ensure it’s adequate. This is a good time to review the replacement cost of your home and ensure the dwelling coverage on your policy is at the right level.

2. Request quotes from other companies.

Once you know what coverage you want, request multiple quotes from other companies with those same coverage levels. Experts recommend getting three to five quotes to get a good sense of what other companies offer.

3. Compare the quotes to your current policy.

Start with the prices and then review all of the coverage. Even if you requested quotes at a certain level, each insurance company will likely do its own calculation of the replacement cost of your home, which determines the amount of dwelling coverage on the policy. A lower rate may mean less coverage. Be sure to check deductibles and any additional coverage on the policy as well. It’s also important to check the reputation of any company you are considering and its financial stability.

4. Decide if switching home insurance is the right move.

Maybe one of the quotes really jumped out to you as a great deal on solid coverage, but if not, consider whether it’s the right time to switch. If you have a specific reason for leaving your old insurance company, that may be powerful enough to switch even if none of the other quotes are a much better deal. But if you’re just shopping around out of curiosity and don’t find anything that makes the switch worthwhile, maybe you don’t want to switch after all.

5. Complete the application process for the new policy.

Once you’ve selected the policy that’s right for you, complete the application and pay the premium, ensuring that you know what date the coverage will start.

6. Cancel your old policy.

Contact your current insurance company to cancel the policy. You may be able to do this over the phone, or it may need to be done in writing. To avoid a lapse in coverage, ensure that the cancelation date is on or after the date that your new coverage starts.

7. Update your mortgage company.

Your mortgage company requires that you keep insurance on your home. While the new insurance company should send proof of insurance on your behalf, it’s a good idea to contact the company and ensure it has what it needs.

How to switch home insurance when you have an escrow account

Switching home insurance when you have an escrow account involves a few extra steps to ensure a smooth transition. Start by notifying your mortgage lender about your intent to switch, as they manage the escrow account that pays your insurance premiums. Choose a new policy that aligns with your needs and provide the new insurer’s details to your lender. 

Once the new policy is in place, request that your lender update the escrow account with the new information and cancel your old policy to avoid overlapping coverage. Keep documentation of all changes for your records.

Why pay your homeowners insurance through escrow?

If you bought a home with a down payment under 20%, your mortgage lender usually requires you to pay your homeowners insurance through an escrow account. 

The mortgage lender sets up an escrow account for you, and you make monthly payments into the account. 

“This [the escrow account] is so that property-related expenses like homeowners insurance and property taxes get paid on time,” said Steven Parangi, a real estate attorney and owner of Alpine Mortgage. “The rationale is simple: lenders want to protect their interest in the property by preventing lapses in insurance coverage or unpaid taxes that could harm their collateral.”

For example, let’s say you buy a home for $300,000 and have a 10% down payment. You qualify for a 30-year mortgage at 6.5%, pay $3,000 per year in property taxes, and have homeowners insurance costs of $2,400 per year. 

Because you have a 10% down payment, the lender requires you to pay your homeowners insurance and taxes through an escrow account. Each month, you must pay the following: 

“[Escrow accounts] provide a structured approach to handling significant annual expenses that might otherwise create financial stress,” said Parangi. 

Can I change home insurance companies at any time? 

Yes, you can change home insurance companies at any time. While the insurance contract limits when and how an insurance company can change or cancel a policy, there are no limits as to when and how you can cancel your coverage.

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How to change home insurance with escrow

If your mortgage company pays your home insurance premium from an escrow account, there may be an extra step or two to complete the process of changing home insurance companies.

“The homeowner will want to verify with their lender if the individual’s insurance is paid through escrow how they wish to proceed,” Pope says.

Before you sign up for new coverage, contact your insurance company to find out if there’s enough in your escrow account to cover the new premium. Depending on when your current coverage was last renewed, you may not have enough to cover a new policy, and it may take a few days to get any refund due from the old one.

If you don’t have enough money in the escrow account, you can arrange to add funds to pay the new premium.

Tips for updating your home insurance policy through escrow 

Although an escrow account can make it easier to manage your bills, you aren’t locked in with your insurance company for the duration of your mortgage. Even if you pay your homeowner insurance from an escrow account, you can decide to switch insurers anytime. 

To switch insurers, follow these steps: 

1. Shop for coverage

First, shop for coverage. Rates, policy options and available endorsements vary by insurer, so request quotes from several leading insurers to find the best deal on your desired coverage level. The best homeowners insurance companies of 2025 are an excellent place to start. 

Gather necessary documents before comparison shopping

To save time when shopping for a new policy, gather the following documents: 

• Mortgage clause and agreement
• Social security number
• Existing coverage levels
• Property details, including your home’s square footage, age and the age of the roof 
• A list of valuables or personal property
• Details about any safety or security features, such as your security system or fire alarms

2. Review your mortgage documents

Before purchasing coverage, be sure to review your mortgage documents, paying particular attention to the sections on insurance. The mortgage clause will tell you how the lender has to be listed on your homeowners insurance policy. 

3. Purchase a policy

Next, you can purchase your policy. You can adjust your coverage limits and deductible to meet your needs. Review the policy to ensure adequate coverage, then complete the final steps to activate the policy. In most cases, the policy premium will be billed to your escrow account and you will not make a payment; however, if the escrow account doesn’t have enough funds, you may need to make an additional payment.

Note the new policy effective date to ensure there are no lapses in coverage. 

4. Contact your lender

Once you’ve purchased a policy, contact your lender to notify them of the change. Tell the lender when the new policy goes into effect, what the policy number is and the name of the insurer issuing it. The lender will update their records so the escrow account payments will now go toward your new insurer. 

If an additional payment is required, the insurance company will notify you. 

5. Notify your previous insurer

Finally, once you know your policy is in effect, contact your previous insurer and cancel your policy.

If you paid ahead, you’ll be eligible for a refund of the excess premiums you paid.

Pros and cons of switching home insurance companies

Changing insurance companies is generally a painless process, but there are some risks of changing home insurance companies along with the possible benefits.

Pros:

• Saving money with a cheaper home insurance policy
• Additional discounts, especially if you are switching to bundle your insurance
• Possibility of better coverage
• Possibility of better service

Cons:

• Risk of a lapse in coverage
• You may lose loyalty or bundling discounts
• A low initial rate may go up on renewal when initial discounts for switching disappear

You should also know that a cheap rate quote may not be so cheap when underwriting is complete. 

“Every new policy goes through initial underwriting that usually includes an inspection. When a home gets inspected there is a chance that the rate can change slightly due to a more detailed cost estimator,” Pope says.

When should I change home insurance companies?

There’s no particular time that’s right for changing insurance companies; most people do so when they’ve seen rate increases over time and want to save money or when they have had a bad experience, often with a claim.

You should consider changing insurance companies if you’re not completely satisfied with any aspect of your policy, from the price to the service you receive when you call. As for timing, changing at renewal may make things easier, but there’s no reason to wait if you’re unhappy.

“Individuals should consider changing home insurance companies if another provider is offering comparable coverage for significantly less money. Each individual will have a different definition for significant savings, but if I had to quantify it I would say a minimum of 20-30% less. You would want to save significant money because of a few potential pitfalls of changing,” Pope says.

Reasons to switch home insurance

There are a lot of reasons people switch insurance companies, including:

• Rate increases
• Poor customer experience
• Difficulty with a claim
• Your current insurance company is leaving the area or going out of business
• Need for coverage that the current company doesn’t offer
• To get a bundling discount by switching your home insurance to your auto insurance company

How to cancel home insurance when you switch

To cancel your home insurance, simply contact your current insurance company and request that the policy be canceled. Most insurance companies require that this be done over the phone, although some may request that it be in writing.

Provide the date when you’d like coverage to end, and ensure that the company has the correct mailing address to send you any due refund.

How to shop for a new homeowners insurance policy

When you want to change home insurance companies, you need to find new coverage, and that means shopping for homeowners insurance. To make it easier, follow these steps:

• Gather all of the information and documentation on your home, including details about its construction, age, features and size.
• Create a shortlist of insurance companies you want to get quotes from; start with referrals from family and friends and highly-rated companies like those found on our best home insurance companies list.
• Request quotes based on the same coverage levels, bearing in mind that each insurance company will calculate its own version of the dwelling coverage (replacement cost) for your home.
• Compare the quotes on price, coverage, deductible, and each company’s reputation for customer service and claims, as well as its financial stability.
• Choose the company that’s best for you and start the process.

Unsatisfied with your new insurance provider? Here’s what to do

If you switch insurers and find that the new company still doesn’t meet your expectations for customer service or coverage, you’re not locked into that choice. One of the benefits of shopping for insurance is the flexibility to change providers whenever necessary. Unlike some other financial agreements, there’s no limit to how often you can switch insurers.

This freedom allows you to continually seek the best fit for your needs, whether you’re dissatisfied with the responsiveness of customer service, the clarity of policy terms, or the value of the coverage you’re receiving. By regularly researching and comparing providers, you can ensure that you’re getting the most competitive rates and the highest level of service.

However, it’s important to consider any potential drawbacks, such as cancellation fees or lapses in coverage during the transition. To avoid these issues, carefully plan the switch by aligning the start date of your new policy with the cancellation of your old one. This proactive approach ensures that you maintain seamless coverage while exploring better options.

Common mistakes to avoid when switching insurers

Changing insurers is a relatively simple process. However, there are some common issues that people run into: 

1. You didn’t review your coverage

Before switching insurers, review your existing policy and consider any changes to your property. For example, if you renovated the kitchen, added a bathroom or installed a swimming pool, you may need a higher coverage limit or increased liability coverage. 

2. You forgot to check exclusions

Insurers differ not only in pricing and available discounts but also in the optional coverage options they provide and the exclusions outlined in their policies. Be sure to review the new company’s exclusions; otherwise, you could be in for a nasty surprise. 

For example, some insurers have breed restrictions for dogs, such as pit bulls, rottweilers and German Shepherds. If you own one of those breeds, your policy may have a clause that excludes any claims related to your pet. 

3. You didn’t ask about discounts

Companies offer various discounts that can help you save on homeowners insurance. For instance, if you install a security system, sign up for paperless billing, or replace your windows with hurricane windows, you could qualify for substantial discounts. 

Switching home insurance with an escrow account doesn’t have to be complicated. With a bit of preparation and attention to detail, you can find a policy that better meets your needs and fits your budget. By shopping around, keeping your lender informed, and avoiding common pitfalls, you can make the transition smoothly while maintaining continuous coverage. Taking the time to reassess your policy ensures that your home remains protected and that you’re maximizing the value of your homeowners insurance.

What our expert says

Zack PopeAgency manager, David Pope Insurance in Missouri.

“Individuals should consider changing home insurance companies if another provider is offering comparable coverage for significantly less money. Each individual will have a different definition for significant savings, but if I had to quantify it, I would say a minimum of 20-30% less. You would want to save significant money because of a few potential pitfalls of changing.”

Leslie Kasperowicz

Managing Editor

 

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at Insurance.com.

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