You may decide to change your homeowners insurance for reasons that are best known to you. However, it may seem difficult to make an easy transition. You may incur a penalty or fee if you change it before the policy expires. It is often easier to make the change after your policy expires.
Here are some things to consider before changing your homeowners insurance.
What are the terms and conditions of the policy?
Insurance policies always have terms and conditions for the agreement between the provider and client. This stipulation identifies the general requirements of an insured and the insurer on matters such as loss reporting, settlement, property valuation, additional policies, subrogation rights, and cancellation or non-renewal. Before you switch homeowners insurance, it is advisable to read up on the rules governing early termination.
Most insurance companies charge a penalty or fee for early cancellation and ask for a notification period (usually thirty days) before it is granted. The client may be required to write a cancellation letter containing the insurance details and how any unearned premium will be returned.
What are your coverage needs?
Insurance needs will change throughout your life. As such, it is important to determine your coverage needs and how they are estimated under your new insurance. It may not be as simple to transfer your old coverages, deductibles, and limits to a new insurance company as the evaluation might have changed. Before changing to a new insurance company, it is best to compare the protection provided to ensure you are not getting a lower rate but also substantially less coverage. It is not financially-savvy to pay less premium only to spend significantly more in the future when emergencies arise.
Compare the old and new home insurance policies.
The Internet has made it easy to shop for insurance rates from the comfort of your home. You can compare rates and get quotes from numerous companies to suit your specific situation. Sourcing for the best rates is one of the first steps towards a smart investment. However, it is important to research the company as well. This step is to avoid falling victim to new and inexperienced providers that lack the necessary resources to provide adequate protection and compensation when accidents occur.
Get quotes with matching coverage, limits, and deductibles as your old policy. If you’ll be changing insurance companies, it is best to move all your policies, if you have more than one, to the new provider. This step often attracts a multiple-policy discount that lets you pay significantly less than if you had separate insurance companies for your policies.
Start your new policy before canceling the old one.
It is easiest to make the transition when your existing policy is set to renew. Providers often send important policy details to clients a few weeks before it is due for renewal. You can use this information to get current details and rate information that can be used to compare rates with other companies.
Although it may be tempting to avoid the penalty fee and let your policy expire before canceling, it is best to have a new policy in place before canceling your existing one to avoid a lapse in coverage. Here are some things to note before and after submitting your cancellation letter.
- Ensure the date of cancellation is the same or after your new policy’s start date.
- Receive a confirmation that your insurance has been canceled or will not be renewed.
- Enquire whether you’re to be granted a refund. If you’ve paid your premium in advance and are canceling before the policy expires, you may be refunded part or full payment.
These are a few things that you need to consider while changing your homeowners insurance. Do you have questions regarding your homeowners insurance? Talk to the professionals at Gee-Schussler Insurance Agency to get started on your tailored policy today!
