Whether you have been with your homeowner’s insurance company for many years or your recent policy is about to expire, you may be wondering if it is time to change your house insurance. While staying with the same insurance company can have a number of benefits, such as premium discounts, there could be some valid reasons for wanting to switch providers when your policy comes up for renewal.
If you are wondering if you are able to change your house insurance at any time, instead of waiting for your annual renewal, be warned it may come with a penalty. Often if a policy is cancelled before the expiration date, there will be a “short rate” penalty for doing so. To find out what you need to know about changing your house insurance, keep reading below.
Why Switch Home Insurance Companies
Most people want to make sure that they are getting the best possible rate for their home insurance and will want to shop around come renewal time. Although it is important to remember that price isn’t always everything, you want to make sure that you have the right coverage for your needs as well.
The main reasons to consider switching insurance companies are:
- To get additional coverage or less restrictive coverage for your policy than what your current carrier offers.
- To get better service. Perhaps you filed a claim or had questions about your policy and were not satisfied with the level of service that you received.
- To get a better price. Another carrier may offer discounts or a lower price that you qualify for and provide the same level of coverage that your current policy offers.
When to Consider Switching Home Insurance Companies
There are certain life changes or events that can make it beneficial to shop around for a better insurance rate. Buying a new home is a good example, and you should start rate shopping as soon as your offer is accepted so that you will have protection beginning on the day you take ownership.
Getting a quote for your new home from your existing insurance company is a good place to start, however, keep in mind that your policy rate will likely be different than what you are paying for your current home. This is due to a number of factors, such as if your new home is located in an area more prone to certain risks such as flooding. Other risk factors which may increase your premium on your new home can be the age of the house, age of the furnace, age of the roof, etc.
It is also possible that your rate may go down for your new home. For example, if your new location will be in very close proximity to a fire station or is equipped with a brand-new security or monitoring system you may see a rate drop.
How to Cancel or Replace Your Home Insurance Policy
If you do want to cancel your insurance with your existing provider, it is important that you find out if you will be subject to a penalty. Before cancelling, review your policy to locate the specific steps that you need to follow.
If you are replacing your policy, make sure that you are aware of the pros and cons of both policies before you make the switch. It is also essential to ensure that your new policy provides coverage before the cancellation date of your current policy. Otherwise, you may have a gap in coverage and risk not being protected should an incident occur.
Working with an Insurance Broker
By working with a trusted insurance broker, you can have peace of mind that you will be able to get the best coverage at the lowest rate possible. Especially if you have bought a new home or have made changes to your existing home, working with a professional will ensure that you have enough insurance to properly cover your home and belongings.
At Bow Valley Insurance, we do the shopping for you. We get quotes from multiple insurance companies to find you the best coverage at the lowest possible rate. If you are thinking of changing your home insurance, contact us today for a free, no-obligation quote.