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.
Secure. Free. Easy-to-use.
Excellent
)
Written bySarah 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
){kind=small}
){kind=small}
)
Edited byAshley Cox
)
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
){kind=logo}
){kind=small}
){kind=small}
Updated
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.
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.
Table of contents
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 an 8% increase in 2025, placing rates at $3,520 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.
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 paying 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.
Find Affordable Home Insurance
See quotes from top insurers in minutes
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
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 change home insurance companies:
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 request quotes online from 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.
If you don’t know where to start, the following table shows the most affordable home insurance premiums from various top-rated companies:
The below rates are estimated rates current as of: Thursday, September 4 at 12:00 PM PDT.
Insurance Company  | Average Annual Premium: $300,000 in Dwelling Coverage |
|---|---|
| Grange | $1,260 |
| Amica | $1,392 |
| CSAA | $1,464 |
| Westfield | $1,524 |
| AIG | $1,704 |
| USAA | $1,752 |
| AFI | $1,788 |
| American Family | $1,860 |
| National General | $1,860 |
| Travelers | $2,004 |
| Farmers | $2,160 |
| Mercury | $2,220 |
| Allstate | $2,256 |
| ASI | $2,340 |
| Foremost | $2,388 |
| Auto-Owners | $2,388 |
| Nationwide | $2,676 |
| State Farm | $2,712 |
| Encompass | $2,952 |
| Erie | $3,012 |
| COUNTRY Financial | $3,084 |
| Allied | $3,252 |
| Chubb | $3,636 |
| Shelter | $3,648 |
| Metropolitan | $4,248 |
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 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.
Tips for switching home insurance companies
If you’re in the process of switching home insurance companies, keep the following tips in mind:
Pay attention to renewal dates. While you can switch home insurance companies anytime, it’s often easiest to switch right before your current policy is set to expire. Make sure your new policy goes into effect before the old one expires to avoid a lapse in coverage.
Compare quotes from multiple insurers. Get quotes from at least three companies side by side to make sure you’re getting the best deal on your current coverage.
Read company reviews. Before you decide to switch, research the other companies you’re considering to see how their customer service and financial strength ratings compare. Saving money on your policy might not be worth it if the company has a reputation for poor customer service or claims-handling.
Speak with an insurance agent. If you aren’t sure whether switching insurers is the best decision for you, speak with an independent insurance agent or broker who can help you weigh your policy options.
When it makes sense to 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 in coverage.
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 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 7,669+ reviews
4.8/5
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 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.
How to switch home insurance when you have an escrow account
Most homeowners pay for their homeowners insurance and their real estate taxes through an escrow account that their mortgage company manages. 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.
If you have an escrow account and want to switch home insurance companies, follow these steps once you’ve compared quotes and picked a new insurer:
Verify your lender’s mortgage clause. The mortgage clause should be part of your loan closing documents. It spells out how your mortgage lender should appear on insurance documents.
Purchase your new policy. Buy the new policy from the home insurance company you’ve selected.
Cancel your previous policy. Confirm the effective date of your new policy, then contact your previous insurer to cancel. Have your previous policy end on the same day your new policy starts.
Contact your mortgage lender. Let them know that you’ve switched home insurance companies, and give them the start date of your new policy. Your new insurance company should handle details such as sending your new declarations page to your lender.
Deposit your premium refund into your escrow account. If you switched insurers before your previous policy expired, your former insurance company should send you a prorated refund. Your mortgage company can walk you through the process of depositing the refund into your escrow account.
Important Information
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.
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]
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.
Other structures coverage
Other structures coverage pays for outbuildings, such as a detached garage or shed.
Personal property coverage
Personal property insurance covers your personal belongings, including those you keep in another location, such as a storage unit.
Loss of use coverage
Loss of use coverage pays your regular living expenses if a covered event displaces you from your home.
Personal liability coverage
Personal liability coverage protects you against a legal judgment if someone sues you for injury or property damage.
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 additional information below can help you understand more about switching home insurance companies.
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.
Methodology
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
- Dwelling coverage: $300,000
- Deductible: $1,000
- Personal property limit: $25,000
- Liability limit: $300,000
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
Related articles
)
How to Manage Your Home Insurance Renewal
September 8, 2025
)
How to Buy Home Insurance
September 4, 2025
)
Cheapest Home Insurance for Older Homes
September 4, 2025
)
Compare Home Insurance Quotes
September 4, 2025
5 Best Home Insurance Companies
September 14, 2025
)
Cheapest Home Insurance Quotes
September 4, 2025
)
Condo Insurance: What It Covers and How Much You Need
September 4, 2025
)
What Happens If You Can’t Get Home Insurance?
March 14, 2024
Sources
- National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance."
- Insurance Information Institute. "What is covered by standard homeowners insurance?."
)
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.
Sarah has been a contributor at Insurify since December 2022.
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