In most cases, yes. Your insurer refunds the premium you paid for the part of your term you won’t use, minus any cancellation fee or penalty. At our $182 average, canceling six months into a 12-month policy returns about $91 under a prorated refund, and less if your insurer uses a short-rate calculation.
How to Cancel Your Renters Insurance Policy
Updated: October 13, 2026
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Key Takeaways
You can cancel renters insurance at any time. Some policies require advance written notice, so check yours before you pick an end date.
You'll get back the premium you prepaid for the unused part of your term, minus any cancellation fee or penalty. Lemonade says it charges neither.
We recommend buying your new policy before you cancel. A gap leaves you without liability or personal property coverage, and it can break a lease that requires renters insurance.
How to Cancel Renters Insurance in 5 Steps
- 1Choose your end date.
Choose the day you want coverage to end, such as your move-out date. State Farm lets you schedule a future cancellation date, so you don’t have to cancel the day you call.
- 2Contact your insurer.
Most insurers let you cancel online or by phone, though some still want a signed written request. Whichever way you cancel, have your policy number and end date ready. If you cancel online, screenshot the confirmation page. If your insurer wants the request in writing, sign it.
- 3Get written confirmation.
Request written confirmation that shows your end date and refund amount, and save it. A phone call will not be proof. Landlords and future insurers can ask for proof of your coverage dates.
- 4Turn off autopay.
After you receive your confirmation, turn off autopay to avoid another charge. Check your next statement and confirm that no new charge posted.
- 5Follow up on your refund.
If your refund hasn’t arrived within 21 business days (depending on the state), call customer service with your confirmation number and request a status update.
MONEYGEEK EXPERT TIP
Line up your cancellation date with the day your new policy begins. State Farm says a phone cancellation usually kicks in right away, so if your new policy starts tomorrow and you cancel today, nothing protects your belongings or covers your liability for that gap.
Will You Get a Refund If You Cancel Renters Insurance?
Prorated | You get back the share of your premium that covers the unused days. |
Short-rate | The insurer keeps a penalty on top of the earned premium, so you get back less than the prorated amount. IRMI says the penalty comes from a short-rate table in your policy or a percentage calculation, with 10% as one example. |
Your policy contract says which method applies. California’s Department of Insurance says short-rate is the general rule there when the policyholder cancels, though some companies use pro rata.
If you pay monthly, you’ve only prepaid the current month, so there’s less to get back. Ask whether your insurer prorates that last month, and set your end date for the last day of your billing cycle if you can.
Refund timing varies by insurer. In California, the Department of Insurance says insurers must issue the refund within 25 business days of receiving your notice. If yours is late, call your insurer’s billing department with your confirmation number.
A cancellation fee or short-rate penalty comes out of your refund, so ask about both before you set your end date.
How Major Insurers Handle Renters Insurance Cancellation
Lemonade lets you cancel in its app or on its website, with no fee or penalty. State Farm's cancellation page lists two options: a phone call or a visit with your agent.
Phone or in person (agent) | Cancel through your agent | Ask your agent for written confirmation | |
Phone or online (via underwriter) | Identify the underwriter in the account first | Contact the underwriter directly | |
Phone, agent, or mobile app | Policy number + desired end date | Mailed or emailed | |
App or website | Policy (in-app cancellation option) | Confirmed in-app instantly | |
Phone or online account | May be transferred to an underwriting partner | Get confirmation from the underwriter, not Progressive |
In our analysis of $20,000 in personal property coverage, the average policy costs $11 a month at Lemonade and $12 at State Farm. Progressive and Allstate average $15. From cheapest to priciest of the four, that's a $43 gap a year ($135 to $178).
What costs more is delay. Each month your policy runs past your move-out date adds $11 to $15 for coverage you can't use. State Farm customers should book the agent call before moving day. Lemonade customers can finish in the app the day they move. If your cancellation goes through an underwriting partner, get the written confirmation from that partner.
When to Cancel Renters Insurance and When to Keep It
Keep your policy while you still rent. Cancel once you move out or your replacement coverage has started.
- 1Canceling over the price
High premiums don't have to mean no coverage. Compare renters insurance quotes across providers first, or look into cheap renters insurance options that fit your budget better than a full cancellation would. Adjusting your coverage limits with your current insurer is usually faster than switching altogether.
- 2Canceling because you're moving
Some insurers let you update your policy to a new address. Lemonade has you set up a new policy for the new address and cancel the old one once you've moved. Ask which your insurer requires before you cancel. If you're moving to another state, confirm your insurer sells renters policies there.
- 3Canceling because you got a roommate
You don't have to cancel when someone moves in, but your policy may not cover them. Lemonade says roommates aren't covered by your policy and that you're both better off with your own. Ask your insurer whether it can add your roommate before you compare that with two separate policies.
- 4Canceling because you bought a home
Time the switch so your renters policy doesn't lapse before your new home insurance policy is active. A day or two of overlap costs far less than a gap in coverage.
Keep your renters policy until your homeowners policy starts. At $182 a year on average, a day of overlap costs about 50 cents. Get the start date from your new insurer and set your renters cancellation to match.
- 5Canceling because a lease required it
If your lease requires renters insurance, canceling before it ends breaks that term. Ask your landlord in writing before you drop coverage. Lemonade says it's common for landlords to require at least $100,000 in liability coverage, so keep any replacement policy at or above that. If your landlord is listed as an interested party, they can receive updates about your policy.
What Happens If You Cancel Your Renters Insurance?
When you cancel, your coverage ends on the date you choose, and every loss after that comes out of your own pocket. The average policy costs $15 a month ($182 a year), per our analysis.
Personal property coverage ends | You replace stolen or damaged belongings yourself. A laptop and a TV add up fast. Add a wardrobe, and the total can pass $5,000, about 27 years of the average premium. |
Liability coverage ends | If a guest is injured in your rental, you pay their medical bills and legal defense costs. Our baseline policy carries $100,000 in liability coverage, and that drops to zero. |
You absorb disaster costs | Repairs and replacement after fire or water damage come out of your own savings. The same goes for theft. |
You may violate your lease | Many leases require renters insurance, and canceling breaks that term. LegalClarity says the result ranges from a warning letter to eviction proceedings, depending on your landlord and state. Some landlords buy a policy and bill you, which LegalClarity says almost always costs more than the coverage you canceled. |
The first three rows cost you only if a loss happens. The lease risk starts the day coverage ends, whether or not you ever file a claim. The record problem starts only if you stop paying instead of canceling. Check your lease first, then cancel through your insurer.
Alternatives to Canceling Renters Insurance
If price is the reason you're canceling, change the policy before you drop it. The average renter pays $15 a month ($182 a year) for $20,000 in personal property and $100,000 in liability coverage, per our analysis.
Switch to Amica | $116 | $66 (36%) | Nothing, if you keep the same limits |
Switch to Lemonade | $135 | $47 (26%) | Nothing, if you keep the same limits |
Switch to State Farm | $145 | $37 (20%) | Nothing, if you keep the same limits |
Lower your property limit from $50,000 to $20,000 | $182 (from $310) | $128 (41%) | Belongings payout capped at $20,000 |
Raise your deductible from $1,000 to $2,000 | $169 | $13 (7%) | $1,000 more out of pocket on every claim |
Switch savings are measured against the $182 national average. The limit row starts from $310 at $50,000. Switching is the only move that cuts your premium without cutting your coverage. Amica's 36% and Lemonade's 26% both land inside the 25% to 40% savings range we find from shopping and bundling.
Lowering your limit saves more, but it only works if your belongings are worth less than $20,000. Add up what you own room by room first, using our guide to how much renters insurance you need. Keep liability at $100,000 or more, since Lemonade says landlords commonly require at least that amount. A higher deductible saves $13 and adds $1,000 to every claim, so skip it unless you keep that cash on hand.
Rates vary by ZIP code, so compare at least three quotes for your address with our renters insurance calculator or the cheapest renters insurance list. Ask each insurer about discounts and bundling renters with auto. In our analysis, most companies offer 10% to 25% off both policies.
Canceling Renters Insurance: Bottom Line
To cancel renters insurance, contact your insurer by phone or online, or send written notice if it requires that. Pick an end date that matches your move-out or your new policy's start, and get the cancellation confirmed in writing. Then turn off autopay and follow up if your refund hasn't arrived within 21 business days. You can cancel at any time, and most insurers refund the unused premium.
We recommend buying your new policy first if you still need coverage. At $182 a year on average, a gap puts belongings that can top $5,000 at risk. If price is the reason you're leaving, switching insurers or lowering your limit cuts the cost without ending your coverage.
How to Cancel Renters Insurance Policy: FAQ
Yes. State Farm takes cancellations by phone or in person through your agent, and says phone cancellations are usually effective immediately, or you can schedule a future date. Lemonade lets you cancel in its app or on its website, and says there's no fee or penalty for canceling early. Check your policy's cancellation provisions before you pick an end date, and get the end date confirmed in writing.
Yes, in most cases. Your insurer refunds the premium you prepaid for the unused part of your term, minus any cancellation fee or short-rate penalty. Lemonade says there's no fee or penalty for canceling early. If you pay monthly, LegalClarity says there's often little or nothing to refund.
A prorated refund returns the share of your premium that covers the days you didn't use. Cancel after three months of a 12-month, $182 policy, and you get back nine months' worth, about $137. A short-rate refund subtracts a penalty, so you get back less than the prorated amount. International Risk Management Institute (IRMI) gives 10% as one example of how insurers set it. Check your policy contract's cancellation provisions to see which method applies.
Cancellation mostly comes down to verifying your identity. State Farm, for example, asks for your policy number, plus your name and date of birth. If you're switching, your agent may also ask for your new insurer's name and policy number, plus its start date. Lemonade says that if your landlord wants proof of insurance, a declarations page usually covers it.
Possibly. If your landlord is listed as an interested party on your policy, they can receive updates about it. Lemonade says landlords often ask to be listed for that reason. Check your lease for any proof-of-coverage requirement.
About Mark Fitzpatrick
Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.
Sources
- IRMI. "Short-rate cancellation." Accessed October 14, 2026.
- State Farm. "How to Cancel Your State Farm® insurance Policy." Accessed October 14, 2026.
- Lemonade. "The Ultimate Lemonade Renters & Homeowners FAQ." Accessed October 14, 2026.
- California Department of Insurance. "Residential Insurance: Homeowners and Renters." Accessed October 14, 2026.