Tips to consider when switching home insurance.
Switching home insurance providers should not be done impulsively. It requires careful research and consideration. Comparing coverage, limits, and deductibles is crucial in learning how to best switch insurance companies. You can’t just look at the price of the policy. Here are some tips to help guide you through a home insurance switching process.
Why should you switch home insurance providers?
There are a variety of reasons to consider before switching your home insurance. While insurance rates have been trending upwards, perhaps this is stretching your budget, and now you are considering a jump to a new provider. Maybe you can benefit from bundling your car and home insurance with one provider. And there is customer service. Whether it is ongoing customer service or service related to a recent claim, if your current provider let you down, then it may be time to consider making a move. Before you switch home insurance, it is crucial to do your research to be confident you’re making the right choice.
When can you switch your home insurance policy?
Technically you can do this any time, but it’s best to wait for your policy renewal to avoid additional fees. There may be a penalty for canceling your policy early. In that case, you may want to wait until your current policy ends before making the switch. This is a common oversight when people skip their due diligence figuring out how to switch insurance companies.
Staying in your policy until the next renewal date isn’t a bad idea, either. You can use your insurance renewal cycle to lock yourself into the rates you want until you’re ready to move to a new company.
How to switch home insurance.
1. Examine your current policy
Look at your current policy and determine if it provides the protection you need. If it does not, contact your current insurance provider to ensure you have the right coverages and features for your needs and adjust them accordingly. Then if you decide to consider switching, you will know that you have an up-to-date rate for your current policy. This way, you are better positioned to compare apples to apples. Take a closer look at these aspects of your existing policy:
- Review your coverages in detail
- Check the policy limits
- Understand if there are any exclusions
- Assess your deductibles
- Check for overland water and sewer backup coverage
- Check your policy effective dates
2. Shop around for home insurance
Coverage and price shouldn’t be the only factors you consider. Customer service is a crucial factor to consider. Take the time to research the reputation and dependability of insurance providers. Read company reviews posted on Google or Facebook. Ask your friends and colleagues for a recommendation or referral. Once you’ve narrowed it down, consider getting quotes from about three insurance companies so that you can compare coverage options and pricing. While most companies will offer standard dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage, they may have different pricing structures and endorsements.
3. Buy the new policy
Once you find the right insurance provider and home insurance policy, make your purchase, and set the start date right before your current policy ends. This ensures that you won’t have a lapse in coverage between your old policy ends and your new one begins. Note: having a lapse in coverage can be a violation of your mortgage agreement.
4. Notify your existing home insurance company and your lender
Once you have received your new home insurance policy, it is time to contact your existing home insurer and let them know you would like to cancel the policy. Make sure you align the cancellation date with your new policy effective date to ensure no coverage gap. If your previous insurance provider accepts your cancellation over the phone, ask for a letter or email confirming the cancellation. If you pay your home insurance directly, ask for details on any refund due to you on prepaid portions of the policy.
If you have a mortgage, you will need to keep your lender in the loop. One of the conditions of your mortgage is to keep your home insurance policy up to date. If you pay for your home insurance directly, call your lender to notify them you have switched insurance companies. If you have an escrow account with your lender and they pay for your home insurance from the bank account, it is essential to notify them right away so the lender directs payments to the new insurance company.
The process of switching home insurance providers is a decision that is best met with a measured approach. Changing home insurance doesn’t always make sense. However, the timing may be right to consider making a move for the reasons just outlined.
If you currently have home insurance with us, contact your Bauld Insurance Advisor, and they will explore all your options to ensure you have the best insurance for the best possible rate. If you have your home insurance elsewhere, give us a call, we can help you be well protected.