One of the best ways to make sure you’re getting the best deal on homeowners insurance is to periodically comparison shop and check if you can get a better price with a different insurer. You might want to ask if you can get a better rate with another insurer if you find one.
You can, the good news is. It is legal to change your home insurance. However, if your mortgage lender insists that you have homeowners insurance (which almost always is the case), you will need to ensure you are following the correct steps. Continue reading to find out how to seamlessly change your homeowners insurance to save money.
How to change your home insurance
It is easy to switch your home insurance. Follow these five steps to change your home insurance.
Consider whether changing your home insurance policy is the best decision.
It’s important to research homeowners insurance before you make a decision. Compare apples to apples by reading the fine print of the policies. Is the policy limit on the new policy equal to or greater than the current policy? Is there any exclusions that are not covered by the cheaper policy? Are the deductibles equal? It is important to avoid any surprises later.
You may find that the cheaper quote means less coverage or that your losses would be reimbursed as actual cash value instead of replacement cost coverage. The replacement cost is the cost of replacing your item at current market price. Cash value covers the depreciated cost of your items. It is worth considering whether a cash value policy will save you a few hundred dollars each year.
Compare ratings
Do some research about the company and the opinions of customers if the quote passes the test. It is important to see how the insurer handles and pays claims. You should take written reviews with a grain. Many customers only review companies for their ability to pay out claims. Some good sources for customer ratings include the Better Business Bureau, as well as J.D. Power’s Customer Satisfaction Survey, and Property Claims Satisfaction Study.
Take a look at the effective dates of your current policy
To find out when your coverage ends, check your homeowners insurance declarations page. Although you can switch at any moment, if your policy has been pre-paid for a specific period of time it may be easier to wait until your policy ends before switching. You can cancel your policy at any time, but it might take some time to receive a refund.
Purchase the new policy
Once you have a clear idea of how the newer quote will work for you, and you are aware of when your current homeowners insurance ends, it is time to act. Apply for the new policy, and then pay to endorse it. It takes about one to three days for a new homeowners insurance policy to go into effect. If you don’t want your current coverage to lapse, then you should purchase the new policy before cancelling the existing one.
A date of effective will be requested by you. Enter an effective date if you have decided to cancel your homeowners insurance. If your current policy expires on June 30, then you can set your new policy’s effective day to June 30. You can choose to change your policy sooner if you prefer. Notify your insurer by noting the date.
Notify your current home insurance company
Once you have received payment receipts from the new insurer and a homeowners insurance declarations page, it is time to contact your current home insurer to cancel the policy.
Call your insurance company and tell them “I’d love to cancel my homeowners policy as of”. Give them a date. You can request that your policy be cancelled if your new policy becomes effective on May 15. You might get some resistance or a warning about your coverage ending. You may explain that you have a new policy in effect as of the date. Ask for confirmation by email or letter if the insurer accepts the cancellation over the telephone. It will be necessary to notify your mortgage lender.
Ask for information on refunds on pre-paid portions of your policy if you pay your home insurance directly, and not through an intermediary. Ask about the date and method of reclaiming any premiums that are automatically drafted by the insurance company.
You may be required to cancel by some insurers. Make sure you note your email address and mailing address. Also, make sure to indicate what information you will need. Send an email or letter with your name, policy number and home address. In your email, state that you would like to cancel your homeowners policy. You can save the email or send the letter with delivery tracking.
Get in touch with the lender
You must keep your lender informed if you have a mortgage. Your mortgage will require you to keep your home insurance policy current. Your lender should be notified if you have switched insurance companies if you are paying for homeowners insurance. Email them a copy your new homeowners insurance declarations page and payment receipt, as well as a copy your cancellation notice.
You should notify your lender immediately if you have an escrow bank with them and they pay your homeowners insurance.
Questions frequently asked
Can I change my home insurance?
Although you can change your home insurance at anytime, there are some important steps that you should follow. First, purchase the new insurance and then cancel your current policy. Notify your mortgage lender about the change.
What page is the homeowners insurance declaration page?
Your proof of insurance is the homeowners insurance declaration page. This page contains important information about your homeowners insurance policy. It includes details such as the start and end dates of the policy, coverages and the name and address for the insured.
What information do I need to change my homeowners insurance?
A homeowners insurance declaration page, as well as proof that you have cancelled your home insurance with your previous insurance company will be required to prove your new policy.
How can I tell if switching to home insurance is a good idea or not?
You should evaluate whether switching to home insurance is worth it if you find lower-priced coverage. Compare the deductibles, coverage limits, and whether the policy is replacement or cash-value. If the new policy offers the same coverage as the old, it is wise to change homeowners insurance. You’ll have to evaluate whether the savings you make by switching to a cheaper policy will be worth the sacrifices.