Not happy with your current homeowners insurance company? Not to worry. By following these simple steps, canceling an insurance policy to get the coverage you need should be a cinch.
step 1: get a new homeowners insurance policy first
Although you can cancel your policy at any time, it's important to already have a new home insurance policy in place to avoid a lapse in coverage, which could result in higher rates and difficulty getting insured again — not to mention it would likely violate your mortgage agreement.
So while you shop around for coverage, make sure you factor in the rebuilding cost of your home in addition to how much stuff you need protected. Consider whether your coverage needs have changed since the last time you reviewed your policy, and whether or not you should increase or decrease your limits on your new insurance.
step 2: contact your insurer
Once you've narrowed down the new insurance company that feels right for you, contact your current insurer and let them know you'd like to cancel your home insurance (no sooner than your new policy's start date).
You can also contact your insurance company through a written request. In either an email or written letter, be sure to provide the following information:
- Your name
- The address of the insured home
- Your contact information
- Your policy number
- A simple statement that explicitly says, "I would like to cancel my policy", and the date the policy cancellation should take effect.
Once again, make sure your new home insurance policy is active before you cancel your current policy. You should also ask for a prorated refund if you've paid for your policy in advance of its expiration date.
step 3: notify your lender
Your mortgage lender likely has an escrow account for your home, which contains funds for expenses like property taxes and home insurance (your monthly mortgage bill typically includes the cost of those expenses). It's therefore important that your mortgage lender has the correct insurer on file with your escrow account so that you don't run into late fees or, even worse, a canceled insurance policy.
common reasons to cancel your homeowners insurance
Have you considered changing homeowners insurance companies because you want to bundle your home coverage with another policy? Were you dissatisfied with the service you received after making a claim with your current insurer? Looking over your renewal statement, have you come to find that your premium has spiked?
From poor customer service to exorbitant rates, there're a number of reasons people move on from their insurers. The easiest time to change home insurance companies is when you're nearing the end of your policy term — but if you've pinpointed a more suitable insurer after doing research, then it may be worth making the move even if it's in the middle of your current term.
start your search for dependable homeowners insurance with esurance
Have you decided to take that first step in changing home insurance companies? If so, start by getting a fast, free homeowners insurance quote from Esurance. With the financial backing of Allstate, you can count on us every step of the way.
Plus, we offer a wide range of customizable coverage options and a bunch of money-saving perks to help keep extra green in your wallet. Feel free to also give us a call at 1-866-439-5633, where our licensed agents are available at these times.
How to change homeowners insurance in escrow
In spite of the confusion around changing home insurance companies while in escrow, the process is actually not that complicated. We'll break it down for you.
Things to consider when renewing homeowners insurance
Before signing the dotted line and sending it back, you may want to go over your renewal statement to ensure your protection is up to par.
More about homeowners insurance
Looking for another insurance product?