Homeowners insurance plays a major role in protecting your home and finances, so it's important to find the right policy for your needs. If you find that your current homeowners insurance is more expensive or offers inferior coverage compared to other policy options, then you're likely wondering if you can switch insurance providers.
The answer is a resounding YES. You can change homeowners insurance companies at any time — whether you just started a new policy or you're nearing the end of one. However, few people take advantage of this option.
According to our policycentral Home Insurance & Inflation Shopping Survey of 2023, only 13% of homeowners switched insurance companies last year because they found a cheaper rate.
To help make it easier, we put together step-by-step instructions for changing home insurance policies with the help of Policygenius.
5 steps to changing home insurance companies
Changing homeowners insurance can be relatively simple if you have all of the information you need to make the switch. Our licensed insurance experts can help you compare home insurance quotes from multiple companies, cancel your current policy, and notify your mortgage lender of the switch.
1. Review your current home insurance policy
When shopping for homeowners insurance, you should have your current policy on hand to make sure you have all of the information necessary to make a proper policy comparison. In most cases, you'll be able to find everything you need on your home insurance declarations page, such as:
Annual premium
Coverages
Coverage limits
Endorsements, or optional coverages
Deductibles
The policy period (e.g. effective date and expiration date)
If you're not sure whether or not you've received your policy declarations, reach out to your insurance company for a copy. You may also be able to retrieve your dec page by signing into your online account portal on the provider's website.
2. Consider how much home insurance you need
With home rebuilding costs constantly going up due to high inflation and frequent disasters, your house may be underinsured if it's been months or years since you last updated your policy. In other words, the amount of dwelling coverage you need to replace your home may be higher than the coverage limits in your current policy. Keep this in mind as you compare it against the quoted coverages and rates of other companies.
Not sure where to start? A licensed agent at policycentral can help you calculate your home insurance needs and provide coverage recommendations based on your situation.
If your coverage needs haven’t changed, just use your current coverage amounts when shopping around for a new policy.
How much home insurance coverage do I need?
3. Compare home insurance quotes from multiple companies
If you're interested in changing home insurance, it could be because you have a particular company or policy in mind. But to ensure you aren't missing out on cheaper rates or better coverage, consider comparing home insurance quotes from at least 3 companies.
In particular, you'll want to consider how much coverage you're getting at each company's quoted rate. If a company offers marginally cheaper rates but significantly less coverage than other options, then it likely isn't the best value.
Here's how policycentral can help you compare:
Check out our picks for the best home insurance and the cheapest home insurance companies of 2024, which include company ratings and detailed breakdowns of the best and cheapest home insurance for a variety of scenarios.
4. Buy your new policy & cancel your old one
Once you find a policy that checks all the boxes, it’s time to switch home insurance companies. A policycentral agent can help you set up your new policy and can even cancel your current home insurance policy on your behalf.
It can take anywhere from a few hours to a few days for your new homeowners insurance policy to take effect after you make the purchase. Though keep in mind if you purchase the policy a certain number of days in advance, you may be eligible for an advanced quote discount.
To avoid a lapse in home insurance coverage that would leave your home unprotected, make sure your new policy’s effective date lines up with your current policy’s cancellation date.
5. Let your mortgage lender know you switched insurers
If you have a mortgage, your lender will likely want to review the new policy and ensure they're named as a loss payee for claims.
Your insurance agent will likely iron out these details with your lender on your behalf and ensure any home insurance escrow funds are routed to the new insurance company. But to be on the safe side, reach out to your insurance provider or lender and verify that all parties are aware you're changing home insurance companies.
How often can you switch home insurance companies?
There’s no rule for how often you can switch home insurance companies. You can cancel your policy and change insurers whenever you want — even in the middle of your term. However, if you're in the middle of filing a home insurance claim, you'll likely want to wait until after your claim is complete to change home insurance providers.
How to change homeowners insurance policies with an escrow account
Many homeowners with a mortgage pay their homeowners insurance through an escrow account. Escrow accounts are set up by your mortgage lender, and the money put into the account goes towards various expenses, including your home insurance premium.
If you want to switch homeowners insurance companies and you have an escrow account, the process of changing insurers won’t differ too much from the steps listed above. You’ll just want to make sure you notify your lender right away.
If you cancel your policy in the middle of your term, you should expect a refund check for any unused premiums. Be sure to double-check with your lender that future payments you make to the escrow account are being paid to your new insurance company.
How home insurance escrow works
Why you should shop around for home insurance every year
The home insurance industry is operating with tighter-than-ever margins due to record insurance payouts from wildfires, hurricanes, tornadoes, and other catastrophes fueled by climate change in recent years. And as a result, it’s likely your premiums will go up in the coming years as well.
From May 2022 to May 2023, 94% of homeowners saw their quoted annual premium increase compared to the previous year, according to the 2023 policycentral Home Insurance Pricing Report. And homeowners in some states saw their premiums rise over 30% year over year. All of this proves that it pays to shop around for home insurance each year.
Can I switch homeowners insurance with an open claim?
Yes, you can switch home insurance companies even with an open claim. But keep in mind that your original insurer will still process your claim even if you switch companies with an open claim.
Also, you won’t avoid a rate increase by switching companies before your claim has been processed; insurance companies report claims to a central database as part of your CLUE (Comprehensive Loss Underwriting Exchange) report, so your new insurer will know about the claim even if it hasn’t finished processing.
Can I change insurance mid-policy?
Yes, you can change insurance companies even if you are in the middle of an active policy. If you have already paid for your insurance for the year, you’ll likely be refunded anything you paid toward the remaining length of your policy, called a pro rata refund.
Can I transfer my home insurance policy to a different person?
No, you can't transfer your home insurance policy to a different person, nor can you transfer the home insurance policy of a home you inherited to yourself. That's because homeowners insurance doesn’t automatically pass on to the new owner of the home after someone dies. Instead, you'll need to purchase a new policy. You can learn more with our guide to home insurance for an inherited home.
How often should I change my homeowners insurance?
It’s recommended that you shop around and compare homeowners insurance companies every year. A different insurer may offer you better rates for your coverage needs.
What do I need when changing homeowners insurance?
When changing home insurance companies, you’ll need a copy of your current policy’s declarations page, along with any changes you want to make to your coverages, coverage limits, or deductibles.
Can I switch home insurance at any time?
Yes, you can switch home insurance companies whenever you want — you don’t need to wait for your policy to expire.
Why you should switch home insurance with Policygenius
Save time AND money
policycentral customers saved an average of $1,250 per year by re-shopping their home and auto insurance.
Compare quotes from the best insurers
Compare rates from top insurance carriers including Nationwide, Allstate, and Progressive with no impact to your credit score.
We handle all the paperwork
From buying your new policy to canceling your old one to notifying your mortgage lender of the switch, we can take care of the tedious details on your behalf — all at no additional cost.
