How to Switch Home Insurance Companies

You can change homeowners insurance at any time, even in the middle of your policy term. However, some insurers may charge a cancellation fee if you end your policy early. Since insurance regulations and coverage options vary by state, always check your current policy's terms to understand any penalties or refund options.

An escrow account doesn’t stop you from changing insurance companies. The account simply holds part of your monthly mortgage payment so your lender can pay property taxes and insurance premiums on your behalf. 

When you switch, your new insurer sends proof of coverage to your lender, who updates the escrow account to direct payments correctly. If you’ve prepaid your old policy, you’ll usually get a prorated refund. Just be sure your lender and new insurer have the right mortgage details to keep coverage seamless.

Switching homeowners insurance is as simple as buying a new policy and canceling the old one. However, follow some key steps to ensure you purchase adequate coverage, avoid coverage lapses and don't end up paying for two policies at once.

Learn how to change homeowners insurance companies, even in the middle of your policy term:

• Step 1: Review Your Coverage and Decide Whether to Switch
• Step 2: Gather Details and Compare Quotes From Several Providers
• Step 3: Choose Your New Policy and Align Start and End Dates
• Step 4: Cancel Your Old Policy
• Step 5: Notify Your Lender of the Change

Before searching for a new provider, pull your current policy and note the key details:

• Coverage limits
• Deductible amount
• Inclusions and exclusions
• Renewal date
• Any lender-required coverages, such as flood or earthquake insurance

Knowing your deductibles and what your policy covers makes it easier to spot gaps or redundancies in competing quotes. A switch can bring lower premiums, better coverage or stronger customer service, but it can also mean cancellation fees or losing loyalty discounts. If your current policy covers what you need at a competitive price, staying put may be the right call.

Shopping around is one of the most effective ways to find the best home insurance company at the best price. Start by collecting all the personal and property details insurers will need for an accurate quote, then request estimates from at least three to four companies. You can shop online and use an online comparison tool to save time and look at sample rates from multiple insurers simultaneously.

Here's what to compare when reviewing homeowners insurance quotes:

Choose the policy that best fits your cost, coverage and service needs. Comparing insurers at the same coverage level shows which ones price more competitively. The table below shows how average home insurance costs vary by company and coverage level.

Set the new policy's effective date to start on or before the day your old policy ends. That eliminates any coverage gap and keeps you from paying for overlapping coverage at the same time.

Before canceling, notify your current provider in writing. If the policy auto-renews, confirm the cancellation date and whether written notice is required. Get the right contact information and include all necessary details to avoid delays or unexpected charges.

You can switch insurance anytime, but don't cancel your current policy before the new one takes effect. This prevents coverage gaps and paying for overlapping policies. For homeowners with a mortgage, a coverage lapse could violate your loan agreement and put your home at risk.

Your mortgage usually requires up-to-date home insurance. Call your lender and tell them you've changed insurance companies.

Send them documentation that includes:

• Your mortgage loan number
• Names and addresses of your present and new insurance companies
• Your old and new policy numbers
• Payment receipt from your new insurance company
• Copy of your previous policy’s cancellation notice

Changing home insurance companies is within your rights as a homeowner. Switching providers can give you more control over your insurance, and you can do it anytime.

Here are some of the most common reasons homeowners consider changing home insurance providers:

Switching home insurers can cut your premium, improve your coverage or both. You don't have to wait for your policy to expire. Buy the new policy first, then cancel the old one once the new coverage is confirmed active.

Homeowners considering changing insurance companies often have questions about the process. Here are answers to help make switching providers easier.

We analyzed quotes from multiple insurance providers across the U.S. Data are from a sample homeowner profile across different locations and companies, producing reliable estimates of what homeowners pay at each coverage level.

Homeowner Profile

• Good credit score (769 to 792)
• Home built in 2000
• Wood-frame construction
• Composite shingle roof

Base Coverage Details

• $250,000 in dwelling coverage
• $125,000 in personal property coverage
• $200,000 in personal liability coverage
• $1,000 deductible

For expensive homes, we also collected quotes at higher limits: $1,000,000 in dwelling coverage, $500,000 in personal property coverage and $1,000,000 in liability coverage.