Changing your homeowners insurance might sound complicated, but it’s a smart move if you're looking to save money, improve coverage, or switch providers. Whether you’ve found a better rate, need more protection, or are unhappy with your current insurer’s service, it’s important to make the switch carefully to avoid any lapses in coverage. A gap, even for a day, can leave your home unprotected—and if you have a mortgage, it could violate the terms of your loan.
The good news? Changing your homeowners insurance can be a straightforward process when done the right way. A few smart steps can ensure a smooth transition from understanding your current policy to coordinating start and end dates. In this article, we’ll walk you through exactly how to change your homeowners insurance without missing a beat.
Why Homeowners Switch Insurance Policies
Homeowners often decide to switch insurance policies for a variety of practical reasons, including:
Better Rates: One of the top reasons for switching is to save money. New quotes or bundling options may offer similar coverage at a lower cost.
Improved Customer Service: If you’ve experienced poor service—such as delayed claims, billing issues, or unhelpful support—switching to a company with a stronger reputation can make a big difference.
More Comprehensive Coverage: Life changes, like renovations or purchasing valuable items, might require coverage that your current policy doesn’t include. A new policy can offer better protection for your evolving needs.
Refinancing Your Mortgage: When refinancing, lenders may require updated insurance information, giving you a chance to reassess your current policy and shop for a better option.
Policy Customization or Flexibility: Some providers offer more flexible coverage options or discounts for things like home security systems, which can be appealing to homeowners looking to tailor their protection.
Bundling Opportunities: Switching policies may allow you to bundle home and auto insurance or add life insurance for a discount, maximizing savings and convenience.
Each of these reasons can lead to better value and more peace of mind for homeowners.
When You Can Change Home Insurance Companies
You’re not locked into your homeowners insurance policy—you can switch at several key points, depending on your situation. Here are the most common times to make a change:
At Renewal
The easiest and most common time to switch is when your policy is up for renewal. This gives you a clean transition without cancellation fees and is a great opportunity to shop around for better rates or coverage.
Mid-Policy Switch
You don’t have to wait for renewal—you can switch at any time. However, some insurers may charge a small cancellation fee or keep a portion of your unused premium. Be sure your new policy starts before canceling the current one to avoid coverage gaps.
When Refinancing or Changing Lenders
If you’re refinancing your mortgage or your lender changes, you’ll likely be asked to update your insurance information. This is a great time to review your policy, compare quotes, and possibly switch to a provider that better meets your needs.
Take These Steps To Change Your Home Insurance
Whether you're switching for better rates, coverage, or service, being organized and intentional with your transition can help you avoid common pitfalls like lapses in coverage or issues with your mortgage lender. Here’s how to do it the right way:
Step 1: Review Your Current Policy
Start by understanding what your current policy covers and what you’re paying for. Look at your deductible, coverage limits, and any exclusions. This will help you compare new quotes more effectively and decide what you want in your next policy.
Step 2: Shop Around and Compare Quotes
Get quotes from multiple insurers and compare the premium and coverage details. Look for policies that match or exceed your current coverage and check if discounts (like bundling with auto or security system discounts) apply.
Step 3: Purchase the New Policy
Once you find the right policy, go ahead and purchase it, but don’t cancel your existing policy yet. To avoid a gap in coverage, make sure the new coverage has a clear start date that overlaps with your current policy.
Step 4: Notify Your Mortgage Lender (If Applicable)
If your mortgage is paid through an escrow account, your lender needs to know about the change. They typically pay your insurance premiums on your behalf, so you’ll need to send them proof of the new policy to update their records and ensure the correct provider gets paid.
Step 5: Cancel the Old Policy
Once your new policy is active and your lender is informed, you can safely cancel your old policy. Be sure to request written confirmation and check for any refund of unused premium.
Avoid These Common Mistakes When Switching
Switching homeowners insurance can be simple, but a few common mistakes can lead to costly issues if you’re not careful. Here’s what to watch out for:
Canceling Your Old Policy Too Soon: Always make sure your new policy is active before canceling the old one to avoid any gaps in coverage.
Forgetting to Notify Your Lender: If your mortgage is paid through an escrow account, your lender must be updated with your new policy information to ensure premiums are paid on time.
Not Comparing Coverage Details: Don’t focus solely on the price—make sure the new policy offers equal or better coverage than your current one.
Ignoring Deductible Differences: A lower premium might come with a higher deductible. Make sure the out-of-pocket cost fits your budget.
Overlooking Potential Discounts: When shopping for a new policy, ask about bundling, security system discounts, or loyalty savings.
Find the Policy That’s Right for You With SelectQuote
Switching homeowners insurance doesn’t have to be stressful—especially when you have the right guidance. At SelectQuote, we make it easy to compare policies from some of the most trusted insurance carriers in the country, all in one place. Whether you’re looking for better coverage, more competitive rates, or simply want a provider that offers better service, we’re here to help you make a confident, informed decision.
With over 40 years of experience, our licensed insurance agents work with you to understand your unique needs as a homeowner, ensuring you get the right protection for your property, belongings, and lifestyle. We’ll walk you through each step of the switching process—from reviewing your current policy to coordinating with your mortgage lender if you have an escrow account. Plus, we’ll help you avoid common mistakes and make sure there’s no gap in coverage.
