How to Change Homeowners Insurance [Switch Smart]

You’ve probably heard the phrase “there’s plenty of fish in the sea” before. While this is typically spoken in reference to love interests, the sentiment can also apply to buying homeowners insurance coverage. 

Whether you are unhappy with the policy you already have, are looking for a new house, or are purchasing your first home (even if you’re buying a house with someone you are not married to), think of buying home insurance a little like speed dating. That’s because there is no shortage of homeowners insurance companies to choose from and shop between. And if you decide the one you have no longer fits your life, you can simply break up and move on.

Whether you decide you're no longer happy with your carrier or need different coverage, read on to learn how to change homeowners insurance carriers and the important factors to remember along the way.

Key takeaways

• You can switch your homeowners insurance coverage at any time, even in the middle of a policy term.
• Shopping around often can help you find better coverage, rates, or both.
• If you switch home insurance policies, you may be eligible for a prorated refund of premiums already paid.
• Be sure to note the effective dates of your current and new policies before finalizing the switch so you never have a coverage gap.

5 steps to changing homeowners insurance

If you're interested in changing homeowners insurance coverage for your property, there are a few important steps to take. These will enable you to not only switch home insurance carriers (if desired) but also make key changes to your policy while ensuring that you keep the coverage you need without any gaps.

Before you start this process, make sure you understand the answers to basic questions like, “What does home insurance cover?”, “What does homeowners insurance not cover?” and “What is an insurance deductible?” You can find the answers to these and other important topics in our learn center, which will help you make the most informed decisions possible.

Review your current coverage

If you want to change homeowners insurance coverage, the first step is to review your current policy carefully. You can find everything you need to know on your declaration page. 

First, understand what an insurance declaration page is. Also known as a dec page, this first sheet of your official policy documents will provide information such as your insurance limits, deductibles, the policy’s effective date, and a breakdown of your premiums. If you’ve chosen to add an insurance rider or even have specific insurance exclusions to note, they will often be shown on the declarations page, too. 

A good review of this summary sheet will help you determine what you like (and don’t like) about your current coverage. That way, you know what to look for with your next insurance policy.

Check out a few home insurance providers’ rates

Once you’ve reviewed your current policy and decided what coverage you want, your next step is to shop around. You can find potential carriers in your area by asking friends, neighbors, or your real estate agent. 

When evaluating or even switching home insurance policies, it’s smart to get quotes from several different insurance providers. Be sure you’re comparing apples to apples — matching deductibles, coverage limits, and either actual cash value (ACV) or replacement cost value (RCV) coverage — to choose a policy that’s right for you.

Track wait times and read reviews from current policyholders to get a feel for how they treat their customers. Once you get an insurance agent on the phone, ask specific questions based on the coverage you need and your unique situation.

You’ll also want to check with each provider to see which discounts they provide to new policyholders. Many will offer a new customer discount in exchange for switching homeowners insurance carriers, while others may offer lower premiums for things like smart home monitoring, security systems, or having a new roof. You may even be able to add certain insurance riders to your policy free of cost.

Buy your new policy

Once you’ve shopped around and compared all of your carrier and policy options, it's time to buy the one that best meets your needs.

It's important to purchase your new insurance policy before canceling your existing policy to avoid coverage gaps. You may be wondering, Can I switch homeowners insurance companies in the middle of a policy? Yes, you can change homeowners insurance at any time—even in the middle of a policy term—and usually get your prorated premiums returned to you. But whether you cancel mid-term or wait until renewal time to switch, just ensure there isn't a lapse in your coverage.

Whether buying your new policy over the phone or online, expect to provide certain information to the carrier. In addition to personal information about you, this often includes info about:

• Your property (the address, square footage, building materials, and the age of certain features like your roof)
• Your previous policy (coverage periods, limits, any claims filed, etc.)

Make sure to decide ahead of time what additional protection you want for your property. For example, if you need second home insurance for a rental or vacation property, bundling your coverage together may not only make the buying process easier but also unlock certain multi-policy discounts. 

Endorsements such as solar panel insurance or water backup protection coverage can often be added to your policy later if you aren’t sure whether you want to buy. Still, it’s recommended that you purchase these as soon as possible so you can rest easy knowing that your home is best protected.

Tell your old insurance provider

Once you’ve purchased your new policy, you’ll need to let your old insurance provider know so they can cancel your existing coverage. Make sure to give them an exact cancellation date for your old policy, which will usually be the same day your new policy will go into effect. 

It’s very important to pay attention to the details when switching home insurance, as many policies start and end their coverage at 12:01 a.m. For example, say that your existing policy expires on the 3rd of the month, so you assume you won't need your new coverage to start until the 4th (the next day). However, setting your new policy to take effect on the 4th will leave you uninsured for almost an entire day. That's a big risk you don't want to take inadvertently!

You can usually let your carrier know that you’re canceling your policy over the phone, though some companies may request it in writing (and that’s a good idea anyway for legal purposes). Before severing ties with your old insurance company, make sure to ask about any prorated premiums you might qualify for and how you’ll receive that money back.

Speak with your mortgage lender

The last step in switching your homeowners insurance coverage is telling your mortgage lender about the change in providers. Most lenders require proof of insurance over the course of your mortgage loan. Even if you aren’t paying for that insurance through an escrow account, your lender still needs to know you have valid coverage at all times. 

This might mean calling your lender and providing information about your new insurance company, the type of coverage you purchased, how much you’re paying each year and your policy number. Other lenders may have an easy option for uploading your declaration page through their portal. 

When switching homeowners insurance, escrow is another key factor. If you’re paying your home insurance premiums through an escrow account, you’ll need to let your mortgage company know about the switch even sooner than if you were to pay for your policy out of pocket. This will ensure they have enough time to adjust your monthly payment requirement and send funds to your new carrier. 

If you qualify for a prorated refund of premiums from your old home insurance provider, they'll return the money to you or your mortgage lender. You can even reinvest that money back in your escrow account to help cover future payments or shortages.

Pros and cons of changing homeowners insurance

There’s no shortage of home insurance companies today, many of which are backed by state-of-the-art technology that makes it easy to shop around. Even if you’re happy with your carrier, you might wonder if it’s time to switch providers or at least get some quotes. 

And you aren’t alone. According to a Deloitte study, 30 percent of homeowners have shopped around and switched carriers in the last three years. 

So, even though you know how to switch homeowners insurance, should you do it? There are many advantages and disadvantages to consider.

Pros of changing home insurance providers:

• You could save money. Regularly shopping for coverage can help you find and lock in better premiums.
• New customers can snag better perks. Some carriers offer select discounts and benefits that are reserved for new customers.
• You might get better coverage. Even if you’re content with your coverage, you might find another carrier that offers automatic riders or free benefits that are rolled into your new policy.
• You can bundle your policies. If you haven’t already, shopping around can be a great way to bundle all your insurance products (home, auto, life, and more) with one carrier, simplifying your coverage and often unlocking additional discounts.

Cons of changing home insurance providers:

• You’ll lose loyalty discounts. If your carrier offers loyalty benefits, you’ll see those disappear when you jump ship to another insurance company.
• It’s time-consuming. Many platforms (like Hippo!) make it easy to shop around and quickly get quotes for new homeowners coverage. But if you are trying to transfer multiple policies and even bundle all of your existing coverage, the process can be a bit more complex.

How do you change homeowners insurance with an escrow account?

An escrow account is a holding account established by your mortgage lender. Each month, when the lender collects your mortgage principal and interest payments, they’ll collect a little extra to cover things like homeowners insurance premiums and property taxes. This money is held in the escrow account until your policy premiums or tax bill is due, at which time your lender will send the funds along.

You're still paying those bills, but your lender facilitates the process. This allows the lender to ensure that you don’t default on either taxes or insurance premiums, so the property is always protected. But if you plan to switch homeowners insurance coverage and have an escrow account, things can get a bit trickier.

The biggest thing to note about how to change homeowners insurance with escrow is that your mortgage lender should always be in the loop. Let them know as soon as you choose a new home insurance policy, and send along any documentation. Be sure there’s no lapse in coverage before the new policy takes effect, too.

Your mortgage lender will adjust your monthly payment accordingly, though it may take a few weeks for the new amount to go into effect. If this results in an escrow overage or shortage, you’ll usually be notified. 

When should I change homeowners insurance providers?

Knowing when to change home insurance providers can be trickier than it seems, especially if you aren’t sure exactly what you’re looking for in your next policy or aren’t unhappy with your current coverage per se. Technically, you can change home insurance at any time… but when is the right time to start your search? 

Generally, your insurance policy will last one year, so shopping around close to renewal time makes sense for many homeowners. While you can change coverage before your policy's effective end date, it might cost you extra money in early cancellation fees. Be sure to read your policy carefully to see what’s applicable.

Even if you don’t shop around every year, it’s a good idea to at least consider a new policy every few years or even more frequently if you’ve just purchased a new home. This will help you stay up-to-date on the standard rates for your area, as well as find new deals and discounts that might not have been available to you before. 

You should also take a look at your current policy to figure out what you feel is missing. Have you made a lot of updates to your home that aren’t reflected? Do you think you’re paying too much for your current plan? Once you have the answers to these questions, you’ll be in a better position to start shopping for new coverage.

Should I change homeowners insurance after I make a claim?

​​While it may be tempting to switch home insurance companies after you file a claim, this won’t give you a clean slate. 

Your CLUE (Comprehensive Loss Underwriting Exchange) is an insurance-specific consumer report provided by LexisNexis and usually lists any claims you’ve made or even started within the last seven years. This report is accessible by any insurance carrier, meaning your claims history doesn’t go away just because you’ve switched providers. 

You may find changing homeowners insurance after a claim to be a challenging process, especially if you have many claims on your CLUE report or if there’s a history of switching providers after each claim. Since this information is available to all insurance carriers, it can also result in higher premiums when you begin shopping around. 

Still have questions?

Want to know even more about changing homeowners insurance coverage? Here are some of the most frequently asked questions on the topic.

Can you switch homeowners insurance at any time?

Yes, you can switch your homeowners insurance policy and even the carrier anytime. Depending on your coverage and how long you've held the policy, you may be subject to early cancellation penalties.  

What do I need when changing homeowners insurance?

If you’re considering changing your existing home insurance policy, you’ll want to gather your current declarations page and any details about your home, such as recent repairs, renovations, or appraisals. This will help you shop for the most comparable coverage and find the best rates.

Do I get a refund if I cancel my home insurance early?

If you cancel your policy early, you'll often be eligible for a prorated refund of any prepaid homeowners insurance premiums. However, some newer policies are subject to early cancellation penalties, so read the fine print before switching.

Is it bad to switch homeowners insurance?

Switching your homeowners insurance coverage can help you build a policy that better meets your needs and even lock in lower rates. If you switch too often or right after filing a claim, though, you might be seen as a more risky homeowner in the eyes of potential carriers.

How often should I change home insurance companies?

You should change your homeowners insurance company anytime the carrier or your coverage doesn’t suit your needs. While you may be happy with your policy for many years, you may also find a carrier that offers better benefits, bundled coverage, or lower premiums… so shopping around often can be a great idea.