Are you considering ending your relationship with your insurance provider? You’re not alone. If your premiums keep rising while your coverage remains the same, it might be time for the “It’s not you, it’s me” conversation with your insurer. Changing providers could be exactly what you and your home need. However, remember that finding the right coverage is more important than just seeking a cheaper price. Stephen Poux, EVP of risk management at the Liberty Company Insurance Brokers, advises focusing on suitable coverage that protects against all risks, including severe events.
To ensure a smooth transition when switching homeowners insurance, here’s what you need to know:
Can you switch your homeowners insurance provider?
Yes, you can switch to a new homeowners policy even mid-term. Most policies allow for cancellation at any time, with a refund for the unused portion. Be aware that some insurers may charge a cancellation fee, so inquire about this before making a change.
What if I have an escrow account?
If your premium is paid through an escrow account with your mortgage payment, follow these steps for a seamless transition:
1. Contact your mortgage servicer for specific protocols.
2. Obtain the mortgagee clause from your servicer.
3. Inform your mortgage company of the switch.
4. Coordinate the timing of the switch.
5. Provide the declarations page to your mortgage servicer.
Is it time to part ways with your insurer? Take this quiz to assess if you should explore new insurance options, including whether your premiums have increased.
Have your home insurance premiums been steadily increasing in the past year due to factors beyond your control? It might be a good idea to explore different options. According to data from S&P Global, the national average effective rate increase for homeowners insurance was 10.4% last year, with 33 states seeing double-digit rate hikes.
If you’ve stuck with the same insurance company for years out of habit or convenience, you could be missing out on potential savings. Shopping around for new quotes could result in significant cost reductions, possibly saving you hundreds of dollars.
Significant life changes, such as retirement, downsizing, paying off your mortgage, or becoming eligible for new age-based discounts, can impact your insurance costs. Some insurers offer senior discounts on home and auto policies.
An improved credit score may also lead to better insurance rates. Just like car insurers, most home insurance providers consider your credit score when determining premiums, so it’s worth exploring different options if your credit score has gone up.
If you’ve made substantial home improvements, like getting a new roof or installing a security system, you might qualify for discounts ranging from 2% to 15%. Consider checking out our guide to top home security upgrades that can help lower your premiums.
If your experiences with your current insurer have been frustrating, it may be time to switch providers. Some insurance companies, such as Chubb, AIG, and Amica, were ranked higher in a 2024 J.D. Power study.
If you answered “Yes” to one or more of these questions, it might be time to look into a new home insurance policy. Keep in mind that the best time to start searching for a new policy is around 30 to 60 days before your existing policy’s renewal date. This allows you ample time to research options, collect quotes, and make a well-informed decision without feeling rushed.
For more detailed guidance, consider exploring age-smart ways to save on car insurance that can benefit all drivers, as well as steps to smoothly transition to a new home insurer:
1. Gather multiple quotes: Obtain quotes from at least three different insurance providers, including an independent agent or broker, to compare rates and coverages. Have your current policy details and home information ready for accurate quotes.
2. Compare coverages side by side: Review and compare your current policy with each new quote to understand differences in policy limits, exclusions, deductibles, peril coverage, and personal property coverage.
3. Identify coverage gaps or needs: Ensure the new policy adequately protects your home and belongings by considering higher coverage limits, endorsements for specific risks, and coverage for valuable items not covered by a standard policy.
4. Ask about discounts: Inquire about all available discounts, such as those for security systems, policy bundling, remaining claim-free, or savings through senior or professional associations like AARP.
5. Review the new policy carefully: Before finalizing your decision, make sure the new policy offers at
To transition between policies, follow these steps:
1. Purchase your new policy: Choose your new insurer, complete the application process, and pay the premium. Your new insurer will send you proof of insurance by email or regular mail, or both.
2. Cancel your old policy: On the day your new coverage starts, write a letter to cancel your old policy. Make sure the cancellation date matches the effective date of your new policy to avoid gaps in coverage or overpayments.
Before changing your policy, consider the following factors about the new company and coverage:
– Financial stability: Check if the new insurer has strong ratings from agencies like A.M. Best and J.D. Power. Look for companies with ratings of A or better, indicating they can fulfill claims even in disasters.
– Claims process: Research how potential new insurers handle claims. Difficult claims processes could outweigh any premium savings. Check reviews on websites like the Better Business Bureau, Trustpilot, and Google.
– Cancellation fees: Verify if your current policy has any penalties for cancellation, especially if you switch before it ends.
– Coverage differences: Don’t focus only on premiums. A cheaper policy might not include important coverages like full replacement costs for belongings.
– Local presence: Some homeowners prefer local agents for face-to-face discussions about coverage options.
After switching insurers, take these steps:
1. Confirm your coverage with your mortgage servicer if you have an escrow account.
2. Document any refunds from your previous insurer.
3. Update your records and auto-payments with the new insurance company.
4. Create or update a home inventory of your belongings for reference.
5. Set an annual reminder to review your policy to ensure your coverage remains adequate.
Ways to Save on Your Home Insurance
Here are some strategies to help you keep your homeowners insurance costs down without compromising on protection:
1. Increase your deductible: If you have enough emergency savings, consider raising your deductible to save on premiums. Use any savings to fill coverage gaps or purchase additional protection.
2. Enhance home security: Installing security upgrades like leak detectors, monitored security systems, or interconnected smoke detectors could make you eligible for discounts ranging from 2% to 15% on your premium.
3. Make age-related improvements: Updating your roof, electrical system, or plumbing can lower premiums, particularly for older homes.
4. Bundle policies: Consolidate your insurance policies to potentially receive additional savings.
5. Check for group discounts: Memberships in organizations such as AARP, alumni associations, or professional groups might qualify you for special rates on home insurance.
Remember, the cheapest policy may not always provide the best value. The right insurance should safeguard your home and financial security while offering peace of mind. Consider increasing deductibles and using the savings to enhance coverage or purchase higher limits of protection, as advised by experts.
For more money-saving tips and information on home insurance, explore our library of personal finance guides.
Source: “Customer Satisfaction—and Drive Policy Shopping,” J.D. Power. Accessed March 15, 2025.
Author Bio: Kat Aoki is an experienced finance writer with a vast portfolio of articles aimed at educating readers on technology, fintech, banking, lending, and investments. Her work has been highlighted on various platforms such as Lifewire and Finder, and she has contributed to leading technology brands in the United States and Australia. Kat is dedicated to assisting consumers and entrepreneurs in making well-informed choices when selecting financial products tailored to their requirements. Article reviewed by Kelly Suzan Waggoner.
