+120 more)
)
)
)
)
)
Licensed property and casualty insurance agent
NPN: 21630969
Updated
Many homeowners assume they have to stay with their current insurance company for the long haul. In reality, you can usually change homeowners insurance at any time — not just at renewal — as long as you buy your new policy before canceling the old policy to avoid a coverage gap.
Renewal is often the easiest time to compare insurance quotes, but insurers let you switch policies mid-term. Homeowners often switch insurers due to rising premiums, poor claims service, or coverage concerns. Here’s when it makes sense to switch home insurance companies, how to do it safely, and what to watch for along the way.
It might make sense to switch home insurers if you receive a premium increase notice, poor service, find better discounts, or are buying a home.
Compare policies carefully, focusing on maintaining or improving coverage limits, deductibles, and endorsements, and avoiding coverage gaps.
Notify your mortgage lender when changing homeowners insurance, and make sure to confirm that it has updated your escrow payments to avoid billing issues.
It’s common to wait until your current policy renews to switch homeowners insurance, but here are a few other times when it makes sense to change insurers:
Your premium increased at renewal. Rate hikes are one of the most common reasons homeowners switch. If your renewal notice shows a premium increase, it’s a good time to compare quotes.
Your coverage no longer fits. Renovations, home additions, new valuables, or rising construction costs may mean your existing policy doesn’t offer enough protection.[1]
Poor claims or customer service. If you had a bad experience with an insurance claim or customer service, that’s a valid reason to look elsewhere.
You found better discounts. Some insurers offer better discounts or savings when you bundle home and auto insurance, install a security system, or replace your roof.
You’re buying or selling a home. If you’re buying a new home or selling your old one, you may need to find a new insurer — especially if you’re moving to a different state.
Renewal is usually the easiest time to switch insurers since your new policy can start when your old policy ends. You can switch mid-term, but pay close attention to policy dates to avoid a lapse in coverage.
Some homeowners review their coverage ahead of hurricane season, when insurers may pause issuing new policies or coverage changes once officials issue a watch or name a storm.
Yes, you can switch to a new homeowners insurance policy at any time. Most companies will issue a refund check for any unused premium if you cancel mid-policy. Some policies charge a small cancellation fee, though it’s not common. Always check your policy terms before canceling your current coverage to avoid gaps in coverage or unexpected costs.
Compare.com partners with top insurers for accurate quotes.
)
Changing homeowners insurance companies is easy if you follow the right order. Here’s our step-by-step guide to help you avoid coverage gaps.
Start by reviewing your current homeowners policy. Look at your current insurance coverages, policy limits, deductibles, exclusions, and any endorsements you have.
Consider whether your coverage needs have changed. For example, if you’ve renovated your home, upgraded to a new roof, added a deck, or purchased valuable items, you may need better coverage. Rising building costs can also affect how much coverage you need.
When comparing home insurance quotes, focus on coverage details, not just insurance premiums. Make sure the new policy matches or improves your:
Dwelling (rebuild coverage): Confirm the limit is high enough to rebuild your home at today’s construction costs.[2]
Deductibles: Make sure the deductible matches your current policy so you’re comparing quotes fairly. A higher deductible can lower your premium but increase your out-of-pocket costs if you file a claim.
Liability limits: Personal liability coverage protects your finances if someone sues you after you accidentally damage their property or if someone sustains an injury on your property. Adding a new pet, a swing set, or a pool raises your liability risk, so you may need higher limits or an umbrella policy.
Key endorsements: If your old policy includes important add-ons like water backup, wind, or roof coverage, make sure your new policy includes them, too.
Make sure the new policy starts on the same date as your old insurance ends, or overlap it by one day. That ensures you don’t have any coverage gaps. Don’t cancel with your previous insurer just yet.
Send a copy of your new policy’s declarations page to your mortgage company. Follow up with your lender in a few days to confirm that it updates your records with the new information so escrow payments go to the correct insurer.
Cancel your old policy once your new coverage is active. Match the cancellation date to your new policy’s start date. Ask your previous insurer for written confirmation of the cancellation and refund details. Follow up to ensure your insurer completes the cancellation process and that you receive your refund.
Watch out for these common issues when you’re comparing home insurance quotes:
Lower coverage limits that leave you underinsured: Make sure the new policy covers the full cost to rebuild your home at today’s construction prices. Lower dwelling coverage limits may save money, but they can leave you underinsured after a major loss.
Higher deductibles you didn’t intend to choose: Some quotes automatically raise deductibles to lower premiums and make it look like you’re getting a better deal. Compare policies with the same deductible to see the true cost of each policy.
New exclusions: Review exclusions carefully — especially for wind, hail, and water damage. Homeowners coverage can vary by insurer and location, and some policies may limit storm coverage or use percentage-based deductibles.
Actual cash value vs. replacement cost: Replacement cost pays to rebuild or replace your home and belongings at today’s prices. Actual cash value (ACV) subtracts depreciation. Make sure you’re not trading stronger coverage for a lower price.
No, changing homeowners insurance won’t affect your mortgage as long as you maintain continuous coverage. Your mortgage lender’s main concern is that your home stays insured at all times.
If your insurance policy lapses, even for a day, your lender may place force-placed insurance on the home and add the cost to your monthly mortgage payments. This coverage is usually more expensive and doesn’t cover personal property or liability like a standard homeowners policy.[3]
As long as you buy new coverage before canceling your old policy and send the new policy details to your lender, switching insurers shouldn’t disrupt your mortgage.
An escrow account is a separate account your lender uses to collect and pay property-related expenses, like homeowners insurance and property taxes. Part of your monthly mortgage payment goes into your escrow, and the lender pays your insurance company directly.
When switching insurers, send your lender the new policy’s declarations page with the start dates so it can update your records and redirect payments. Make sure the policy includes your correct mortgage address and loan number. Follow up with your lender to confirm the changes to prevent duplicate payments or billing confusion.
If you receive a premium refund from your old insurer, ask your lender how to apply it to your escrow account to avoid a shortage that could increase your monthly mortgage payment.[4]
Switching homeowners insurance companies can lead to better service and a chance to lower your premium. Here are a few ways to save when you change insurers:
Bundle your policies. Many companies offer discounts if you insure your home and car with the same insurer. It can lead to a multi-policy discount and simplify billing.
Ask about new customer discounts. Some insurers offer a promotional rate for new policyholders. It never hurts to ask about available discounts before you buy.
Increase your deductible. Choosing a higher deductible can lower your monthly payment. Just make sure you can afford the higher out-of-pocket amount if you file a claim.
Upgrade home features. Improvements like a new roof, storm shutters, a security system, or smart-home devices may qualify you for discounts because they lower claim risk.
Review your current policy carefully. Check for optional add-ons you no longer need. If you’re unsure, ask your insurer to review your policy for unnecessary coverage.
See quotes from top insurers in minutes
We answered common questions people ask about changing homeowners insurance companies.
You don’t need to change home insurance companies on a set schedule. But it’s smart to compare rates at least once a year, especially when you receive your renewal notice. Rising premiums or coverage changes are good reasons to shop around.
Yes. But your current insurer will still handle your open claim. You’ll also want to let your new insurance company know about the active claim to ensure your new insurance rate is accurate.
If you cancel your current policy mid-term, you might have to pay a cancellation fee. And if you’re not careful about canceling your old policy on the same date your new one starts, you could have a gap in coverage.
Yes. Just make sure your lender has the correct homeowners insurance declarations page before closing to avoid delays. Most buyers start looking for coverage after signing a purchase contract and usually have a few weeks to secure a policy. Lenders typically require proof of insurance before you close on the property.
Sometimes. If your policy has unused premiums because you cancel early, your insurer may owe you a refund. Make sure you request written confirmation of cancellation and refund details when canceling home insurance.
No. Canceling or switching insurance doesn’t directly affect your credit history. Getting quotes typically involves a soft credit inquiry, which doesn’t affect your credit.
)
Licensed property and casualty insurance agent
NPN: 21630969
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.