How To Change Homeowners Insurance

Your insurance company failed you for the last time. It's time to change.

Every single time you turn on the television, chances are that you've seen an ad telling you to switch your homeowner's insurance policy to save big bucks. Maybe it's tempted you. Or maybe, it's just a matter of having one too many claims denied or too much red tape for your preferences. Whatever it is, you probably have been hoping to switch your homeowner's insurance to a new company. It happens, but if you want to make the transition smoothly, you need to know how to change homeowners insurance policies without causing a stir with your bank. Of course, this is easier said than done. There are a lot of hoops to jump through, and you want to make sure that you are constantly covered through the process. Are you ready to make the switch? Great! Here's how to switch home insurance without losing your marbles.

Is This Actually a Feasible Idea?

Believe it or not, quite a few homeowners insurance companies don't allow you to make a switch at will. Some have waiting periods that you need to deal with before you can switch to a new policy, while others will charge a fee to cancel before the agreed contract ending date. Before you start looking at insurance companies, you need to read through your current policy to find out what you can and cannot do. If you have any fees that you need to pay to break the lease, it's good to set aside some money for this, too. If you have any questions about the policy's switching protocols, ask your insurance agent to clear things up. Though it's good to read up, do not cancel just yet! That comes in a bit.
how to change homeowners insurance

Find a Replacement

Once you've fully ascertained that you can switch policies, it's time to look for a coverage that suits your needs. This includes finding a policy that's within budget, but that also covers all the types of perils that your home could be exposed to. At the very least, you should look into vandalism insurance, fire insurance, flood insurance, as well as other forms of basic coverage. If you live in a humid area, getting a mold insurance waiver is a smart idea, too. Additionally, you should look into your liability coverage, just in case someone gets injured at your home. Talk to agents to find out what your coverage should include, and then pick a policy with a company you feel will provide the right service for you. Not sure whether they'll deliver? Check out their reviews online.

changing homeowners insurance

Buy One, Cancel the Other

The final step in changing homeowners insurance is making the move. To do this, you will need to buy a policy with the new company first. Once it's purchased, you may need to wait until your coverage kicks in. Once it does, cancel your former insurance policy. The insurer might require you to pay fees to do this, but that's okay. After the old insurance is canceled, your switch is technically all done. With that said, there are often a couple of extra steps that homeowners need to be aware of. If you have a mortgage, you might be required to call up your mortgage lender and give them the heads up about the switch. The good news here is that lenders are always going to be found with a policy change as long as you're still covered. After all, they want you to protect your home, too!