There comes a time when enough is enough. Your current homeowner’s insurance company is once again raising your rates, you have experienced poor customer service when you filed a claim, or your agent is not available when you need them. In most cases, you have the right to switch your home insurance carrier. Don’t assume you are married to your insurer for the life of your mortgage. If you are unhappy, it may be time to consider switching.

 

When You Should Switch

 

The longer you are with your homeowner’s insurance company; you begin to develop a bit of loyalty, especially when it comes to your premiums. If those promises fail to materialize, it’s time to shop around. Homeowners often look to switch companies to:

 

Save money. -This benefit can come in many forms. Perhaps you find a friend or neighbor is paying less than you are and you have relatively the same home. You inquire and find that you would save money by obtaining a policy through the other insurer.

Another way would be that you have your auto policy through a competitor. If you were to bundle your auto and home insurance, you could save money. If you find that your home insurer’s rate is higher than the competition, then you would switch.

 

Gain coverage unavailable with your current carrier. -If you make additions to your home and your current company denies your request to increase coverage levels, find one who will. Or if the situation changes in your home to where you need less coverage, and you were declined a decrease, you would want to seek a better rate from another company.

 

Move into a new home. –A new home is always a good time to examine your policy to see if you need the same level of coverage you had in your old home. Make the necessary adjustments and follow the steps you need to take to switch insurers.

 

Steps to Take

 

There are many reasons you would want to switch insurance companies. A company can promise to be by your side or tell you that you are in good hands, but if they do not live up to your expectations, there are steps you can take to find the company that will meet your needs.

 

• Review terms and conditions of your current policy. Make sure there are no penalties or fees for cancellation. If you plan to switch near the effective date, make sure to contact your lender, so they do not automatically renew the policy you are trying to get rid of.
• Consider your needs. If you have additions to your home or family, or if you have sold any personal items that were once covered, adjust your coverage.
• Consider your current coverage. Always make sure you are comparing apples to apples. Coverage for coverage. Dollar for dollar.
• Shop around. You want to have a reputable company insure your home, but don’t leave anyone out. Compare multiple companies. Consider the company you have your auto insurance policy with. You can receive discounts by bundling your policies.
• Apply for coverage. Do not cancel your old policy before you are approved for the new one. Get the new policy first; then you can cancel the old.
• Notify your existing insurance company. After your application has been approved, then you would notify your current carrier that you have switched.

 

After the Switch, Remember to do This

 

Once you are approved for the new policy, your job is not complete. There are a couple of things you still need to do.

 

Inform your lender. -If your insurance policy is paid through your mortgage payment, you will need to inform your lender. If you fail to, then come renewal, they will pay for the old policy to continue.

 

If a refund is due, send it to the lender. -If you are canceling your homeowner’s insurance policy midterm, then you may be issued a refund for the months remaining on the policy. This is because your lender pays for the insurance for the entire year. You are paying back the lender through your mortgage payments. If you keep this money, then you will still be paying the old policy off and paying for the new policy.

 

To learn more about your options for switching your Homeowners Insurance, contact our team at ProtectiveAgency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.