How to Switch Your Homeowners Policy
If you’ve recently purchased a new home, decided to bundle with your auto insurance, or have found a cheaper rate, you’re going to want to switch your homeowners insurance. If you haven’t found a cheaper quote yet, the first step you’ll want to take is comparison shopping. By visually comparing rates, coverage options, and add-ons side by side, your choice will be easily made. A new homeowners insurance company may offer you more bang for your buck than your current insurer.
After you’ve secured a new, hopefully, cheaper home insurance policy, the next step you’ll need to take is to apply for your new insurance. Some insurance companies offer online application processes while others will require a phone conversation with an insurance agent. During the application process, you’ll need to declare some demographic information, as well as details about your property to the insurance provider, such as the age of your home, your ZIP code, and your marital status.
Once you’ve secured a policy and been approved by your new homeowners insurance company, you’ll want to ensure you’re in complete understanding of details and all policy information. Know your coverage limits, your deductible amount, and what’s included in your insurance coverage (such as flood insurance or other insurance needs). Ask questions about cancellation fees and how to file an insurance claim. All this information is vital to know before anything bad happens.
Don’t forget to cancel your old policy by contacting your former home insurance carrier. You can contact your old insurer by mail, phone, or email, just make sure there is documentation of your communication—keeping a paper trail of your correspondence is important if anything goes wrong with your cancellation process.
If you’re switching insurance companies, it’s crucial to notify your mortgage company of the switch. For homeowners with an escrow account with their mortgage lender, monthly mortgage payments likely include money that is used to pay your homeowners insurance premium. When monthly payments are due, your lender will forward the full amount to the new insurance carrier you have chosen.