Finding the right home insurance company can help you get the comprehensive coverage you need at an affordable price. Whether your current policy doesn’t meet your needs, is up for renewal, or you’re not happy with your current insurance company’s service, it might be worth shopping around for a new home insurance company.
While switching home insurance is a relatively straightforward process, there are a few important considerations to keep in mind before making the move to a new insurance company.
To help you find a home insurance policy that meets your needs, here are a few important tips to keep in mind when switching home insurance companies.
When to Switch Home Insurance Companies
If you’re not satisfied with your home insurance company’s service or your home insurance policy itself, it might be time to consider switching companies.
There are several reasons homeowners may want to find a new insurer. Ask yourself the following questions:
● Do you think you could save money by switching home insurance policies?
● Do you want to increase or decrease your coverage?
● Can you find policy discounts with a new insurance provider?
● Are you happy with your current provider's customer service?
In general, it's a good idea to review your insurance policy every six to 12 months to evaluate whether or not it is meeting your needs in terms of coverage and cost.
When Can You Switch Homeowners Insurance?
You can switch to a new home insurance company at any time — even if it’s not time to renew your existing policy. Though, it’s important to review your policy to check whether or not there are any early termination fees or penalties.
If you're currently looking for a house, you should start shopping for homeowners insurance policies before purchasing your new home. Mortgage lenders will require you to purchase home insurance before closing on a home, so it’s important to explore your options in advance.
If you already own a home and have existing coverage, you can switch policies at any time. If you don’t mind potentially paying an early termination fee, you can switch before your policy expires. If you don’t mind waiting, you can hold off until your policy expires to switch to a new home insurance company without incurring any fees.
5 Tips for Changing Home Insurance
Once you’ve decided to switch home insurance companies, there are a few important steps to take to ensure a smooth transition.
Here are five tips to keep in mind when looking for a new home insurance policy.
Check your home insurance policy terms and conditions
First, you want to make sure to review your current policy’s terms and conditions as they relate to early termination. In some cases, you might incur fees or penalties for canceling your policy before it expires.
You should also review other details about your policy (e.g. coverage limits, deductibles, exclusions, etc.) to make it easier to compare new policies with your existing one.
To find an affordable policy with the coverage you need to protect your home and personal property, you should research and compare several different insurance companies.
When you are requesting quotes, make sure to get quotes for policies with the same coverages, limits, and deductibles from at least three different companies. You should also take the time to read customer reviews and testimonials to learn more about the company’s reputation.
Consider your coverage needs
When switching insurance companies, it’s a good time to reevaluate your coverage needs and determine what policy changes might benefit you.
● Have you made any major upgrades or renovations that impact your home’s value?
● Has your home appreciated in value?
● Have you made safety improvements that might make you eligible for a discount?
● Have you made any changes that could increase your liability (e.g. installing a pool)?
Depending on the answers to these questions, you may need to upgrade your policy to provide more coverage.
Start your new policy before canceling your old one
To avoid a lapse in coverage, you should start your new policy before you cancel your old one. When you call your insurer to cancel your policy, make sure the cancellation date is after the start of your new policy.
You may also ask about potential refunds. If you paid for your policy in advance, you might be entitled to a partial refund, depending on the terms of your policy agreement.
Contact your lender
Often, mortgage lenders open an escrow account after you take out a loan. Whenever you pay your mortgage each month, a portion of your payment is put into this account to cover certain expenses, like property taxes and home insurance.
When you change insurance companies, you should notify your lender so that they can redirect the payments from your escrow account to the correct insurance company.
Request a Home Insurance Quote
Home insurance is essential for any homeowner, and finding the right home insurance company will help you get comprehensive coverage at a rate you can afford.
Contact FIB Insurance today to get a custom quote and learn more about home insurance in Miami, FL.