You are free to switch homeowners insurance policies at any time, whether your current policy is expiring or you’re in the middle of a policy term. Switching involves a few simple steps to ensure that all relevant parties are updated.
Activate your new insurance policy. Once you’ve selected the policy you want to switch to and confirmed you are eligible for coverage, go ahead and activate that policy. You’ll want the new policy to be in place before cancelling your existing policy to avoid a lapse in coverage. When choosing an effective date for the new policy, you can use the date your existing policy is going to expire if it’s coming up soon. If you are refinancing your mortgage, you may want to use the closing date of your loan. Ultimately, the new effective date is your choice.
Cancel your existing insurance policy. When your new policy is in place, your existing insurance carrier will need to be notified to cancel the policy. The cancellation date should match the effective date of your new policy. You can simply call your current carrier and verbally request to cancel, or, if you prefer not to call your carrier, your new carrier/agent can assist you in cancelling. They’ll prepare a policy cancellation request form for you to sign which they’ll send to your existing carrier. If you’ve already paid for your current policy for the year you’re entitled to a pro-rated refund for any unused premium. Your existing carrier will issue this refund once they process your request to cancel the policy.
Update your lender. It’s important that you let your lender or mortgage servicer know you’ve changed policies as soon as you can. No matter how you pay for your insurance, your mortgage company needs proof that you have an active policy or else they may purchase a policy for you. If you pay for your insurance through an escrow account, updating your lender also ensures that future insurance payments are sent to the correct insurance company.
If you’d like assistance with cancelling your existing policy when you switch to a Better Cover policy, just let your Insurance Expert know. They will prepare the required documents for your signature and send them to your existing insurance company on your behalf.