Hollay Ghadery Last Updated On: August 8, 2023

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A Step by Step Guide on How to Switch Home Insurance

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Your home insurance should help you feel protected and give you peace of mind. That’s truly what it’s designed for. But if you have had a poor claims experience or you think you might be overpaying on your home insurance, it’s time to look for greener grass elsewhere. 

This is where switching home insurance comes into play. Many people mistakenly believe they are locked into a policy until the term ends, but that couldn’t be further from the truth.

Keep reading for a guide to switching home insurance policies, including when, how, and why you might jump ship. 

Let’s dig into it. 

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Reasons Why You Might Switch Home Insurance Providers

There are plenty of good reasons to switch insurance providers. The first is the most obvious, and that’s the cost. After all, when it’s your hard-earned money at stake, you deserve to find an insurance provider that fits your needs while working within your budget. And the fact of the matter is, home insurance costs are on the rise (read more here), so finding ways to save has never been more important. 

Some other common reasons you might consider switching providers include:

  • Your coverage needs changed. Maybe you moved to a bigger house, installed a pool, built a home office, etc., but this means you need to update your home insurance so it’s as good a time as any to compare different quotes/policies.
    • Has a new member of the family caused you to upsize homes? Congrats! Check out our free financial guide for new parents to help you navigate this new phase of life. 
  • You want to bundle policies. Many providers offer you a discount for having multiple insurance products with them, like home and auto. But not all do, so that can mean you’re leaving money on the table by sticking with a provider who doesn’t.
  • Your insurer closed down. This can happen. Home insurance claims are on the rise due to natural disasters around the country, and it can mean some insurance providers can’t stay afloat. 
  • You had a poor claims experience. We never want to have to submit a claim, but things happen. And if your insurance provider doesn’t support you or provide a good experience when you’re already dealing with a stressful home issue, it’s time to get the heck out of dodge and find a new provider. 
  • You found cheaper rates. We already mentioned cost as one of the biggest reasons why people switch providers, but it’s worth hammering home. Comparing multiple quotes can save you up to 30% on your home insurance, so what are you waiting for? 

There are plenty of other valid reasons for switching providers. Maybe your current provider doesn’t offer a mobile app, or you find the policy breakdowns easier to understand elsewhere. 

At the end of the day, it’s your money, so why you’re switching providers is no one else’s business. It’s that simple. We’ll show you how.

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How to Switch Home Insurance Companies

The good news is that switching providers is easy. Home insurance is one of those things that we put off dealing with as much as possible, but it’s surprisingly simple to switch policies. 

Here are five easy steps to switching home insurance providers. 

  • Review your current policy. Make sure you’re familiar with the terms, coverage limits, optional endorsements, and more so that you can be sure you’re comparing apples to apples. Plus, it means your policy will be nearby when you’re ready to switch.
    • Don’t have a copy of your policy? Contact your insurance provider. They’ll send you another copy.
  • Determine your coverage. If you’re switching policies because you need an increase or change in coverage, now is the time to figure out how much that is and what policy types you need. Use this home insurance calculator to help you figure out how much coverage you need. 
    • Even if you don’t need a change in coverage, it’s never a bad idea to double-check that your existing coverage is sufficient. After all, with materials and labor costs continuously going up, the dwelling coverage you had when you first took out home insurance might no longer be enough.
  • Get multiple quotes. It’s not enough to get one quote and call it a day. You should be comparing at least three home insurance quotes from different providers to ensure you’re getting the best rate and coverage.
  • Switch policies. Once you’ve found the best home insurance policy, it’s time to sign on the dotted line and pay your first premium to activate coverage. At the same time, reach out to your current provider to cancel your policy. To avoid a lapse in coverage, try to line up the cancellation date with the start date of your new policy. 
    • Some providers will charge a cancellation fee for canceling before the end of your policy term, you should be able to find this outlined in your policy. Some providers may also refund any premiums paid upfront for the rest of the term you’re no longer using. 
  • Contact your mortgage lender. If you have a mortgage, you are likely required to have home insurance to help protect your investment. If you switch policies, it’s important to contact them and let them know. They may want to review the policy and check that they are named. 

In most cases, you can have your new home insurance set up within a day or two, once you have found the policy you’re happy with. Switching providers is easier than you might think, and it comes with a whole host of benefits, including better coverage, savings, peace of mind, and more. 

How to Compare Home Insurance Quotes

Insurance can seem complex, but it’s more simple than you might think. If you’re looking at different policies and starting to go cross-eyed, this is what you should look for to make sure you’re getting the right policy: 

  • Rates: This is probably the first thing you’ll look for. Make sure you’re comparing either the monthly or annual rates between policies, factoring any discounts you’re eligible for, like a new client or bundling discount. 
  • Coverage: Make sure the policies have the same amount of coverage, or factor that into the rates. A cheap rate for less coverage isn’t necessarily the best option. Also check out policy limits and exclusions, and consider any perks the provider offers like an app or 24/7 customer support. 
  • Deductible: Compare deductibles to make sure you understand what it would look like to file a claim. A higher deductible usually means lower premiums, and vice versa. 
  • Customer Satisfaction: Tools like J.D. Power show you unbiased ratings around customer satisfaction and the claims process for home insurance providers. 
  • Financial Strength: Choosing a provider with a high financial rating shows that the provider has the financial means to pay out claims. It can give you more peace of mind. A.M. Best can help you determine the provider’s financial rating. 

There’s nothing wrong with going with smaller providers, as long as you’ve done your due diligence. After all, when it’s your home at stake, it’s worth it to do a little legwork to go with a provider you trust. You can start by getting access to free quotes, so you can narrow down the providers that make sense for you.

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Can You Switch Home Insurance at Any Time?

You bet! Feel free to switch home insurance policies at any time, including in the middle of your policy’s term. You may have to pay a cancellation or fine for switching early, but if you’re switching to save money it may still be worth it long term.

Many providers will also refund the premiums you haven’t used yet but prepaid. For example, if you paid up front for the year but are canceling halfway through, you’ll get six months of premiums back. 

You can also switch policies as often as you want. As long as you have continuous coverage, meaning you’re not going months without home insurance coverage as you search for a new provider, you will be fine. Keep in mind that if you’re in the middle of a claim, it might be best to wait until the claim is resolved before switching providers. 

Key Takeaways: How to Switch Home Insurance Companies

Loyalty to one provider can net you a discount on your home insurance, but it’s not worth it if you don’t like your provider or feel you’re paying too much for home insurance. Cue switching home insurance companies: you can switch providers as often as you need to, and whenever you need to. After all, when your home and financial protection are at stake, company loyalty shouldn’t even factor into your decision.

Switching policies is easy. With our guide, you’ll have your new policy set up quickly and have any loose ends tied up from your previous policy.

Ready to start exploring your options? Get access to free quotes fast here, so you can decide if now is the right time to switch providers. 

We’ve got you covered. 

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Hollay Ghadery Hollay Ghadery is a writer and editor who is passionate about financial literacy as a means to personal fulfillment. Hollay has over 18 years of experience creating content about a range of topics related to personal finance, including insurance, investing, banking, and credit cards. When Hollay isn't writing, she's spending time with her four children, two dogs, and three goats.

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