Purchasing a home is a big investment, so make sure you protect it with home insurance. This type of insurance will protect your home and the contents within it.
If you’re wondering if you can change home insurance at any time, the short answer is yes. You can switch your home insurance whenever you want to.
However, the cleanest way to change home insurance providers is to wait for when the policy term is coming to an end. Then you can decide if you’re going to renew or opt for a new provider. Yet, we understand that there are times where it may make sense to cancel immediately.
The most common reasons people change home insurance is:
1. To get a better rate
2. To get better coverage
If you aren’t satisfied with your current home insurance, follow these steps to find the right policy for your needs:
Steps to changing home insurance
1. Review your current policy
Depending on the insurance provider that you have the insurance policy with, you may be required to pay a cancellation fee. Revisit your policy’s terms and conditions to determine what the effective dates were.
The amount of this penalty will also depend on how far along in your policy you are. If it is early in the term you will pay a higher percentage of the premium, than if you were deeper into the term.
While you may be turned off to paying the cancellation fee, it may still be worth it. Switching providers may mean that you will pay lower rates in the long-term which means bigger savings. Do the math to see which choice outweighs the other and wait until renewal for no penalty.
2. Do you need more coverage?
Consider how your life has changed since you purchased your current home insurance policy. Your policy needs may need to change if you’ve made upgrades to your house or done home renovations. For example, adding a pool in your backyard will increase both property value and liability exposure. Then you may want a larger policy to cover additions like these if they ever needed to be repaired.
3. Shop around for a new policy
To find a new home insurance policy, you will need to compare rates and coverage from different insurance companies. Other than your policy needs, consider other factors such as the company’s customer service reputation since you may need to get in touch with them if you have a claim. Will they be available to help you when you need it most?
If the idea of shopping for home insurance makes you feel overwhelmed, consider using an insurance broker to help guide you through the process. They will compare rates across insurance companies on your behalf to get you the best prices and find the right coverage for your needs. If you need to file a claim an insurance broker will also assist you.
4. Cancel your current policy
It’s very important to secure a new home insurance policy before cancelling your current one. If your policy lapses even for a few days, there can be negative effects such as:
· Having no coverage if something happens during the time you are not insured.
· Your next insurance company may deem you a higher risk since insurers prefer when you have a track record of continuous coverage.
Most insurance companies will require your cancellation request in writing. Remember to collect any refunded payments, since you may be entitled to a refund if you paid into your policy in advance.
Find the Right Insurance Broker
Almost everybody who owns a home or is planning to can benefit from working with an insurance broker. They are experts that can help you find the best coverage for your home insurance needs.
Choose a reliable and professional insurance broker who is working in your best interest. Home insurance is an important decision since it will financially protect you, your home, and the contents within your home.
Our team is highly knowledgeable and experienced to find insurance options that will fit your lifestyle seamlessly. Get in touch and we’ll help you explore the best home insurance solutions for your needs.