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.

Key Takeaways

You can switch homeowners insurance companies whenever you like, including in the middle of the policy term.
Review quotes from multiple companies before you choose your new home insurance policy to get the best deal.
Make sure you have new coverage in place before you cancel to avoid a lapse in your coverage.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Quick tip:

If you change companies at renewal time, you can avoid issues with having enough money in the escrow account and avoid paying out for a new policy while waiting on a refund from the old one.

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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.

Quick tip:

Set the cancellation date of your old policy a day or two after your new coverage is in place to prevent a lapse in coverage.

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.

Frequently asked questions

How often can you change homeowners insurance?

You can switch home insurance companies as often as you like, but bear in mind that there is paperwork and time investment involved, and there may be penalties for canceling a policy early in the term.

Can I switch homeowners insurance with an open claim?

Switching home insurance with an open claim is possible and doesn’t affect the claim. As long as the claim is for an event that occurred while the previous company covered you, that company will have to process and complete the claim.

Can I switch home insurance companies in the middle of a policy?

Yes, you can switch home insurance companies mid-term, but in some cases, an early cancellation penalty may apply to your refund.

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

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.