Whether you're moving to a new house or looking to see if you can save some money, switching your home insurance policy may seem a daunting process at first. We'll show you how changing homeowners insurance companies can be a hassle-free experience.
step 1: check out the terms and conditions of your existing policy
Whatever the reason may be, you have the right to switch your homeowners insurance — whether you're in escrow (which you probably are) or not.
Either way, be sure to look at your existing policy's terms and conditions to ensure you won't get stuck with any penalties or fees for terminating the policy before it expires. If you're unsure about the policy's effective dates, your current insurer can help answer any questions.
If you prefer to wait until your current policy expires rather than switching your home insurance mid-way, make sure to let your lender know 30 to 60 days in advance so they don't process your renewal payment.
step 2: think about your coverage needs
Even if you think you just want to transfer your existing coverages, limits, and deductibles over to a new insurance company, it's a good idea to evaluate your current coverage needs, as they might have changed since you signed up for your last policy.
Have you replaced the old shingles on your roof with newer, hail-resistant ones, for example? Since your roof (and house in general) is likely worth more with upgraded materials, you may want to increase your dwelling protection coverage to prevent paying hefty repair bills if it's ever seriously damaged. Plus, by letting your insurer know of the upgrade, you could score a discount on your homeowners insurance.
step 3: shop around different insurance companies
As you compare homeowners insurance rates from different insurers, make sure you get quotes with matching coverages, limits, and deductibles to ensure you're comparing apples to apples.
And price isn't the only thing that matters, either. Remember to consider other important factors like the company's reputation and customer service availability.
When you get a homeowners insurance quote from Esurance, you'll see firsthand all the perks we have for our policyholders — from a ton of homeowners coverage options that help financially protect your house, your stuff, and more, to discounts to help you save cash on your policy.
Plus, as a member of the Allstate family, Esurance has an A+ rating from A.M. Best* for our financial stability and ability to pay claims. Paired with quality customer service from licensed agents, simple online policy management, and policies tailored to you, what's not to love?!
step 4: seal the deal — then cancel your old policy
It's important to have a new policy in place before canceling your existing home insurance to avoid lapses in coverage.
There are a few things to consider when you call your previous insurer to cancel your policy or let them know you won't be renewing:
- Make sure the cancellation date is on or after your new policy's start date.
- Get confirmation that your policy is canceled or won't be automatically renewed.
- Are you entitled to a refund? If you've paid your policy in advance and are canceling before your term expires, you'll likely be able to get some or all of that money back.
step 5: let your lender know
When you take a mortgage out on your house, your lender typically opens and manages an escrow account, which holds cash for specific home-related expenses like property taxes and your homeowners insurance. When you make your monthly mortgage payment, the amount you're billed includes the cost of these expenses and your lender disperses the money accordingly through your escrow.
It's key to inform your mortgage company of your insurance change so they can direct homeowners insurance payments from your escrow account to the correct insurer. This can prevent late fees, or worse, a canceled policy.
Simply send a copy of your homeowners insurance declarations page and your former policy's cancellation notice to your lender. And voila — you've successfully switched homeowners insurance companies!
Shopping for homeowners insurance
If you're shopping around for a new homeowners policy, check out these 7 questions to ask.
Take advantage of the home insurance calculator from Esurance
Our convenient online tech simplifies the insurance process by offering certain coverage suggestions based on your answers to a few easy questions.
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