Do you feel like you’re paying too much for your homeowners insurance? Or perhaps the customer service at your existing carrier isn’t up to par? 

There are many reasons why homeowners want to change their insurance company. Whatever your reason, you may have questions about switching home insurance and all it entails. Read on to learn: 

• Can you change your homeowners insurer midyear? 

• Why do people switch home insurance companies? 

• How do you switch homeowners insurance with escrow? 

• How do you change your home insurance company? 

Can You Change Your Homeowners Insurer Midyear?

While policies typically last for a full year, the short answer is yes, you can switch your home’s insurer midyear or before the policy is ready for renewal.  

However, it’s very important to pay close attention to the dates of when the current policy ends and the new one begins. If your coverage lapses for even the shortest time, you could end up with a big problem. 

Additionally, if you are switching in the middle of a policy year, the insurance company may charge a fee or penalty. On the other hand, you might get a prorated refund for the time left on your policy. Be sure to check on this with your agent before making a switch. 

Why Do People Switch Home Insurance Companies?

Here are just a few worthwhile reasons to make a change: 

• Buying a new home 

• Dislike current carrier’s customer service 

• Want a better premium for the same coverage 

• Want better coverage 

• Want to bundle policies with the same carrier 

• Want to save with better discounts elsewhere 

Can switching home insurance after a claim prevent a premium increase? 

If you receive a lower insurance premium quote from a new provider, it’s not because it doesn’t know about your claim. Once you make a homeowners insurance claim, it is visible to all potential carriers via national databases. Never try to hide claims from insurance carriers; they’ll always be able to see them. 

Is switching homeowners insurance a good idea? 

If cost is your primary reason for making a carrier switch, pay close attention to the policy details. When you save on the insurance premium, you might lose coverage or features on the policy. In some situations, that might be OK; in others, you won’t want to lose valuable coverage. 

Before switching, ask your agent about savings you were unaware of (such as a discount for a long-standing relationship with the company). You might not have to change insurers to save. 

Is there a risk involved with changing insurance companies? 

The biggest potential risk when switching homeowners insurance companies is that your coverage will lapse. Not only could that cause an issue with your mortgage lender, but it could also be problematic for your bank account. If your home insurance lapses and you need to make a claim, you’ll end up paying for any damage directly out of your own pocket. 

How Do You Switch Homeowners Insurance With Escrow?

If you have an escrow account alongside your mortgage, your lender conducts fund transfers for things like property taxes, mortgage insurance, and homeowners insurance. If you change insurers, the new and old companies will work together with your lender to transfer any funds or send you a check and instructions so you can fund the new escrow account. 

How Do You Change Your Home Insurance Company?

Making the switch to a new homeowners insurance carrier is relatively easy. You’ll look at what coverage you have, decide if you need more or less, and choose a company that has the right products at the right price. Your agent will help you find qualified home insurers to choose from. 

Here is a step-by-step guide to make the switch to another insurance company or policy. 

1. Determine what you most value in an insurance company. 

Are you looking for a better price, better coverage terms, more digital access, improved customer service, or a more personalized touch? An agent who works with multiple companies can be a voice of experience on insurer financial stability, pricing, and customer care.

2. Decide what coverage you need.

Start by examining your current coverage to see what’s included in your policy. That way, you’ll have a better idea of what you’d like to add or change. Come ready with an idea of the value of any specialty items you have as well as any upgrades you’ve made to your home, such as adding a porch or a bathroom. Those substantially increase the coverage limits you need. If you have guns, a trampoline, a pool, or certain breeds of dogs, you will need to make sure any new company covers those. 

Ensure you pay close attention to more than just the premium. Look at: 

• Actual cash value (ACV) versus replacement cost value (RCV)  

• Deductibles 

• Exclusions 

• Policy limits 

3. Compare companies and gather quotes.

Your insurance agent will take all your data, including credit information, and run it through an agency management system to quickly generate choices that meet your needs and give you prices to compare. Take the time to consider potential penalties or fees that come with ending your old policy early. 

4. Buy the new policy.

If everything looks good with the new policy and there are no issues with canceling the current policy, purchase the new policy first. Then, cancel your existing policy. Your agent will handle this segue with very little inconvenience to you. Just make sure you keep your paperwork and fully understand your obligations. You will likely need to set up a payment method, contact preferences, and digital credentials. 

5. Contact your mortgage lender.

If you have a mortgage, be sure to contact your lender immediately. The lender will likely need a copy of your new homeowners insurance declaration page.  

An IOA insurance agent who offers homeowners insurance is the right person to advise you on changing home insurance. For help finding the best homeowners insurance coverage for you, request a quote here.