How to Change Homeowners Insurance Companies

You can change your home insurance company, but you may face a cancellation fee if you terminate coverage before your policy ends.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

media logomedia logo
Ashley Cox
Edited byAshley Cox
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

Featured in

media logomedia logomedia logomedia logo

Updated July 23, 2024

Save up to $852 by comparing quotes from the top 100+ insurance companies

Excellent
Secure. Free. Easy-to-use.
ProgressiveLiberty MutualAllstate
Advertiser Disclosure

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

You can change your homeowners insurance at any time. But people typically switch insurers to help save on rates. Comparison shopping periodically is a good idea to see if you may be able to save.

Home insurance premiums are rising thanks to climate catastrophes, natural disasters, and inflation, so it may pay to find a better rate. The average annual rate increased by 19.8% between 2021 and 2023, from $1,984 to $2,377. Insurify projects a 6% increase in 2024, placing rates at $2,522 by the end of the year. Predictions for a devastating hurricane season may cause more increases in 2025.

Before switching, you’ll need to consider what type of coverage you’ll need and talk to your lender to make sure you don’t have a lapse in coverage. Here’s what you need to know about how to change homeowners insurance companies.

Quick Facts
  • Your monthly mortgage payment may change when you switch to a new homeowners insurance policy if your lender pays your premium from an escrow account.

  • A new insurer may offer a better customer service experience for services like claims processing.

  • Wait to cancel your old policy until you’re sure the new policy has gone into effect.

Find a New Home Insurance Policy

Compare quotes from the top 100+ insurance companies

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Changing homeowners insurance in 5 steps

You can switch homeowners insurance companies whenever you want, and it’s not difficult to do. Here’s how to go about it.[1]

1. Assess your current policy

It’s a good idea to assess your current policy before you start shopping for a new insurance company. It’s especially important if you want to change insurers before your current insurance term ends because some insurance companies charge early termination fees. If yours does, your policy will say so.

Next, make note of the different insurance coverages you have and any limits on their reimbursement. Also, pay attention to how much you’re being charged for each. If you’d like to increase or add coverage, make note of that, too, to help you shop for a new policy by doing an apples-to-apples comparison.

If you have any questions about your homeowners insurance policy, your insurance agent can answer them for you.

2. Decide if it makes sense to change homeowners insurance companies

Whether it makes sense to switch insurers is a highly subjective decision, even in an economic climate where prices are steadily increasing. Shopping around to compare quotes from multiple insurers will help you make the right decision.

If switching could achieve any of the following, it might be the right time to switch:

  • You can get the same, or even better, coverage for the price you’re paying now — or less.

  • Your current homeowners insurance policy’s limits or exclusions are less than your home value or the value of your belongings.

  • You acquire a dog your current insurer excludes from liability coverage.

3. Compare homeowners insurance quotes

Comparing quotes is the best way to confirm that you’re getting the best deal on the coverage you need — or that another insurance agency doesn’t offer you more for less.

The fastest way to compare policies is to go online to request quotes. You can do so by going to different insurers’ websites individually or using a price-comparison platform.

Most forms will ask for your contact information and information about who lives in your home and whether you run a home-based business. It might also ask about your current policy, your claims history, and information about your home’s structure, style, and size, as well as any improvements you’ve made and safety devices you’ve installed.

Keep in Mind

Look not only at prices but also at the precise coverages each company offers, along with policy limits, to make sure the policies you’re pricing truly are comparable. Also, look at deductibles, and check how changing them changes the offered rates.

4. Buy your new policy

Before you buy a policy, check with your lender or mortgage servicer about what’s required. The homeowners policy must meet the lender’s requirements. Otherwise, it could violate the terms of your mortgage loan.

You can purchase the policy as soon as you have the mortgage lender’s OK. Read the policy one final time to make sure you understand the coverages, limits, and exclusions before — or contact the company to speak with an insurance agent who can answer your questions. Then follow the quote’s instructions for completing the purchase.

You might be able to complete your purchase simply by clicking an “accept” button on the website and providing payment information.

5. Cancel your old policy and notify your lender of the change

After confirming that your payment has been accepted and the new policy is active as of the effective date, go to your account on your old insurer’s website or call the insurance agency directly to cancel the policy. The company will refund unused premiums you’ve paid if you’re canceling before the end of the policy term.

Next, call your lender to provide your new policy information.

When you can change homeowners insurance

You can switch your homeowners insurance whenever you want.

The best time to make a change is when you’ve received notice that your premium is about to increase or that your coverage will change when your policy renews.

If you plan to change homeowners insurance companies at the end of your current policy’s coverage period, start shopping for home insurance quotes right away so you can have new coverage in place before the old coverage ends to avoid a lapse.

Can you change homeowners insurance with an open claim?

You can change homeowners insurance at any time — even if you have an open claim. This may be a good option if you’re unhappy with your coverage, want to find a cheaper rate, need a lower deductible for future claims, or find that you’re not having a good experience with how your current insurer is handling the claims process.

After you switch companies, your old insurer will continue to handle your claim under your previous policy until it’s settled or denied. But if you’re unhappy with your settlement, switching to a new insurer won’t change your compensation. And your new insurer may consider your claim history when quoting.

Shop for Home Insurance Online

See personalized quotes from Insurify partners in minutes

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Pros and cons of changing homeowners insurance

While changing homeowners insurance could work in your favor, it’s not without possible drawbacks.

Pros
  • You’ll save money if you can find the same coverage for less.

  • Another company might provide better coverage or customer service.

  • If you have other policies with another insurer, switching over your homeowners insurance could earn you a bundle discount.

Cons
  • You could lose loyalty or bundle discounts you currently receive.

  • If you don’t time the transition correctly, you could have a gap in coverage.

  • Shopping for a new insurance policy can be time-consuming — especially if you’re visiting insurers’ individual websites to request quotes.

When it doesn’t make sense to change your homeowners insurance

You can switch homeowners insurance at any time, but it may not always make sense. Here’s a closer look at some reasons why you may want to stick with your current insurance company:

  • No rate savings: If you’re unable to find a cheaper rate than your current policy, it may not be the right time to switch insurers.

  • Lack of insurance products: If you can’t find a new policy that meets all your insurance needs, like home and auto, you may want to hold off on switching.

  • Poor customer service reputation: While you may be able to save by switching to a new insurer, be sure to read customer satisfaction reviews first.

  • You’re planning to move: If your house is on the market, it may be a good idea to hold off on changing insurers. Instead, you can compare policies and insurance coverage for your new home.

Home insurance and escrow accounts

Most homeowners pay for their homeowners insurance and their real estate taxes through an escrow account managed by their mortgage company. The lender then breaks the annual insurance and tax bills into monthly payments and adds the amount to the homeowner’s mortgage payment. The lender pays the bills from the escrow account as they come due.

Even though the lender pays the bills on your behalf, you’re responsible for the payment. It’s important to log into your mortgage account regularly to keep track of your premiums and verify that they’ve been paid.

Good to Know

Knowing what you’re paying into escrow and how much is being applied to homeowners insurance is the best way to stay on top of your premiums and ensure that you’re getting the best deal.

What to look for in a new home insurance policy

Price is an important consideration when you’re shopping for home insurance quotes, but inexpensive insurance is only as good as the coverage it provides.

Before you switch, make sure the new policy offers enough protection for each type of coverage.[2]

  • illustration card https://a.storyblok.com/f/162273/x/435ffd976a/freezing-of-appliances-or-hvac.svg

    Dwelling coverage

    Dwelling insurance covers your home’s structure, attached structures such as a garage, and the home’s electrical, plumbing, and heating and air systems.

  • car in carage

    Other structures coverage

    Other structures coverage pays for outbuildings, such as a detached garage or shed.

  • illustration card https://a.storyblok.com/f/162273/150x150/dd8822be71/buildings-96x96-orange_svg-038-warehouse.svg

    Personal property coverage

    Personal property insurance covers your personal belongings, including those you keep in another location, such as a storage unit.

  • illustration card https://a.storyblok.com/f/162273/150x150/b022eb76ef/buildings-96x96-green_svg-013-hotel.svg

    Loss of use coverage

    Loss of use coverage pays your regular living expenses if a covered event displaces you from your home.

  • illustration card https://a.storyblok.com/f/162273/150x150/a69f23e05a/healthcare-and-medical-96x96-blue_045-stethoscope.svg

    Personal liability coverage

    Personal liability coverage protects you against a legal judgment if you’re found liable in a suit brought against someone who was injured or suffered personal property damage.

  • illustration card https://a.storyblok.com/f/162273/x/4c9753bdbe/medical-payments.svg

    Medical payments coverage

    Medical payments coverage reimburses the medical expenses of people who are injured while on your property.

Changing homeowners insurance FAQs

Your homeowners insurance can have a major effect on your financial security, so it’s vital that you understand the implications before you switch. The answers to these frequently asked questions may help.

  • Can you change homeowners insurance at any time?

    Yes. You can cancel your homeowners insurance at any time.

  • How do you change homeowners insurance with an escrow account?

    If your lender pays your insurance from an escrow account, you’ll need to provide your loan servicer with the new policy information.

  • How often can you switch home insurance companies?

    You can switch insurers as often as you choose. Generally, it’s a good idea to compare rates periodically to see if you qualify for a better deal. Or ask your existing insurer about ways to lower your premium.

  • Is there a downside to changing insurance companies?

    Switching insurance companies may help you get a lower rate. But if you don’t keep your current policy active until your new policy goes into effect, you could face a cancellation fee. It’s also important to check with your mortgage lender before switching to a new company, as you may have a mortgagee clause with required coverage limits.

  • Will switching insurers change your mortgage payment?

    It depends. Switching insurers won’t affect the portions of your mortgage payment that include principal, interest, or property taxes. But if your premium changes when you switch homeowners insurance companies, you’ll see a proportionate change in your mortgage payment.

Sources

  1. National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance."
  2. Insurance Information Institute. "What is covered by standard homeowners insurance?."
Sarah Archambault
Sarah Archambault

Sarah Archambault enjoys helping people figure out how to manage their finances and credit. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. Her work has been featured on Credit Karma, Experian, LendingClub, Sound Dollar and USA Today Blueprint. She also writes for national insurers, banks and financial institutions like Aetna, MassMutual, Stripe, and UnitedHealthcare. 

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

Featured in

media logomedia logomedia logomedia logo

Compare Home Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate