You aren’t married to your home insurance provider. You can and should switch home insurance companies if you feel yours isn’t offering you the best option. You should reevaluate your home insurance periodically to find the best coverage at the lowest cost. By switching your home insurance, you could end up saving on your annual premium.
Despite the importance of home insurance, it’s common for individuals to stick with the same policy they've had for years without shopping around and comparing policies.
If you're wondering how to switch insurance providers, you've come to the right place. We'll walk you through reasons you may want to switch policies or at least look around to see what else is on the market.
Reasons to Consider Switching Home Insurance
1. Annual review
According to most experts, the best risk management involves an annual review of your home insurance. This helps you better know your policy, so you can be aware of what is and isn’t covered by your provider as well as whether the limits you have in place are still enough to cover your home and personal property. Shopping around on an annual basis also ensures you always receive the best price.
You should start reviewing two months prior to your annual renewal period so you can make the switch without a gap in your coverage.
2. High premiums
If you have a high premium from your provider, it’s time to start comparing quotes.
One of the best ways to reduce your monthly budget is to compare insurance quotes and providers. You can get stuck with a high premium if:
- You neglect to shop around when first purchasing.
- You neglect to shop around periodically or annually.
- You aren’t aware of annual premium increases.
- You make a number of homeowners’ claims.
- You don’t look into safety and risk management discounts.
Learn more about the factors of your home insurance cost here.
3. Inadequate coverage
You’ll want to look for new insurance if you don’t have the appropriate coverage in your current plan. Unfortunately, most people find out that they are lacking coverage after it’s too late.
For example, your basement floods and you now find out that your homeowners doesn’t cover that type of water damage, that you’ll need flood insurance. Or a thief steals your jewelry and you discover your policy has coverage limits on jewelry.
It’s important to know your policy inside and out so you can be fully protected. If you’re not sure what your policy covers or you’re not sure what coverage your home needs, one of our insurance advisors can walk you through your policy language and coverage needs. Just call us at (855) 244-7671. You may also need to consider add-on or umbrella policies for full protection.
4. Poor customer service
Is your insurance company hard to reach? Do they provide you with fast and immediate service? Does an assessor check out your claim in a timely manner? Are they willing to work with you to find the best coverage at the lowest premium? Do they offer a personal claims service with human agents? Do they have a 24/7 claims process in case something happens in the middle of the night?
You want an insurance company that’s on your side. It’s a relationship just like any other, and you want your provider to provide for you. The best companies go above and beyond to keep their clients safe.
If you don’t feel the service is meeting your expectations, it’s time to switch home insurance providers.
5. No discounts
Avoiding high premiums often means participating in home insurance discounts. You want your insurance company to reward you for any risk management steps you take. For example, if you install safety devices or winterize your pipes, some companies will offer a discount on your premium.
Working with a licensed insurance agent, like one of our insurance advisors, can help you find great deals and discounts on your coverage—while improving the safety of your home!
If you aren’t bundling your home and auto insurance, you’re likely overpaying in premiums. Bundling insurance can be a nice discount in your monthly bill.
If you have multiple insurance policies from multiple providers, consider comparing quotes for bundled home and auto.
7. Financial instability
Your insurer should be trustworthy and financially stable. You want to feel secure that the money you’re investing with premiums will be returned if you have a claim. If your insurance provider doesn’t have money in the bank, you could be left in the dark if something were to happen.
If you don’t feel comfortable with your insurance company, it’s time to switch.
Check out A.M. Best Company to see ratings of insurer financial stability. At InsuraMatch, we're proud to partner with over 30 carriers in excellent standing.
8. Life changes
If you experience a significant life event, you may have different insurance needs. Life events may include:
- Moving homes
- Additional home purchase
- New child
- Home renovation
- Car purchase (bundling)
- Contents change
Any significant life events should trigger an instant insurance reevaluation. This is especially critical if you’re moving, as home insurance covers the specific structure and location of your home.
When should you switch home insurance providers?
We recommend comparing quotes two to three months before the end of your policy period. Most insurance policies will automatically renew at the renewal date, so you want to be prepared in advance.
You can avoid a cancellation fee if you switch at the end of your policy period before renewal. You’ll want to let your former provider know you’ll be cancelling coverage, effective the day of your renewal date.
Don’t leave your current insurer without a new policy in place. Gaps in coverage can cause a premium increase. Maintain continuous coverage whenever possible. If you can’t find new coverage by the end of your current policy period, continue with your current provider until you find a new policy.
You can switch before your policy is over. You’ll likely be subject to some cancellation fees, though.
If you’re looking to switch now or at your next renewal date, call an InsuraMatch advisor today at (855) 244-7671 to have them walk you through the process!
Your home insurance isn’t set in stone. You aren’t married to your insurance provider. It’s okay to keep “dating” until you find the perfect match. Switching home insurance providers doesn't always make sense, but for the reasons above, it's a smart idea to shop around every so often to see if a switch is right for you.
The easiest way to shop around for different price quotes on home insurance is to work with an independent insurance agent, like InsuraMatch. Agents have access to tools that make shopping for quotes from multiple home insurance companies at once easy and quick. By shopping around, you can see how what you're paying compares to other home insurance companies. An independent agent can also help you switch home insurance companies if you find better coverage elsewhere.
Shop around with an insurance advisor today by calling (855) 244-7671. They'll help you compare quotes and show you how to switch home insurane companies if that makes sense for you.
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