Top 5 Tips for Switching Your Homeowner’s Insurance

Some people ask themselves this question all the time: should I ask my insurance broker to help me find a new homeowner’s insurance policy? When it comes down to it, you may be ready for a change. Either your insurance policy is too expensive, or you are looking for a company with a better policy for a better price. Switching your homeowner’s insurance policy is incredibly easy and people do it all the time. However, there are a few things that you should keep in mind when you do. When you do make the switch, there are a few people you need to notify, or else you could be leaving them in the lurch. Here are the top five tips for switching your homeowner’s insurance.

  1. You need to let your mortgage lender know that you’ve switched to a new policy, or that you intend to switch. If you have a mortgage, you need to let your lender know – mainly because your insurance could rise if you don’t. When you cancel an old policy, the company will usually send a notice to your lender. In the interim, your lending institution will purchase a policy for your property in order to protect its investment. To avoid this spike in your mortgage, make sure to let your lender know that you’ve switched policies, or that you are about to switch.

  2. If you want to save money on your new policy, make sure to get quotes from different insurance companies. When it comes down to it, you may even find that a great rate is not worth it based on the items a policy covers, so make sure that you find out everything that a certain policy will protect in the instance of a disaster. Also, you can use lower quotes as leverage to get lower rates.

  3. Officially cancel your old homeowner’s insurance. This may seem like an obvious one, but many people have an auto pay service set up where their monthly payment is deducted automatically. If this is the case, you may not notice that you haven’t cancelled your old policy. So, make sure that you officially cancel when you find a new policy. The last thing you want is to be paying for two homeowner’s insurance policies.

  4. Make sure there are no early termination fees. When it comes down to it, you may want to wait a few months to officially cancel your insurance policy, because some policies require a huge fee for terminating early. You can usually find this information in your terms and conditions. You can also ask a representative at your insurance company. Sometimes it is worth it to hold out until your contract ends.

  5. Make sure that you get professional guidance when making the switch. When it comes down to it, a broker or some kind of insurance consultant will be able to give you the expert advice you need to make the transition to a new policy. At the end of the day, navigating the world of homeowner’s insurance can be tricky, so it can help to have someone manning the rudders and steering you in the right direction.