You can change your homeowners insurance at any time. But people typically switch insurers to help save on rates. Comparison shopping periodically is a good idea to see if you may be able to save.

Home insurance premiums are rising thanks to climate catastrophes, natural disasters, and inflation, so it may pay to find a better rate. The average annual rate increased by 19.8% between 2021 and 2023, from $1,984 to $2,377. Insurify projects a 6% increase in 2024, placing rates at $2,522 by the end of the year. Predictions for a devastating hurricane season may cause more increases in 2025.

Before switching, you’ll need to consider what type of coverage you’ll need and talk to your lender to make sure you don’t have a lapse in coverage. Here’s what you need to know about how to change homeowners insurance companies.

Changing homeowners insurance in 5 steps

You can switch homeowners insurance companies whenever you want, and it’s not difficult to do. Here’s how to go about it.1

1. Assess your current policy

It’s a good idea to assess your current policy before you start shopping for a new insurance company. It’s especially important if you want to change insurers before your current insurance term ends because some insurance companies charge early termination fees. If yours does, your policy will say so.

Next, make note of the different insurance coverages you have and any limits on their reimbursement. Also, pay attention to how much you’re being charged for each. If you’d like to increase or add coverage, make note of that, too, to help you shop for a new policy by doing an apples-to-apples comparison.

If you have any questions about your homeowners insurance policy, your insurance agent can answer them for you.

2. Decide if it makes sense to change homeowners insurance companies

Whether it makes sense to switch insurers is a highly subjective decision, even in an economic climate where prices are steadily increasing. Shopping around to compare quotes from multiple insurers will help you make the right decision.

If switching could achieve any of the following, it might be the right time to switch:

• You can get the same, or even better, coverage for the price you’re paying now — or less.

• Your current homeowners insurance policy’s limits or exclusions are less than your home value or the value of your belongings.

• You acquire a dog your current insurer excludes from liability coverage.

3. Compare homeowners insurance quotes

Comparing quotes is the best way to confirm that you’re getting the best deal on the coverage you need — or that another insurance agency doesn’t offer you more for less.

The fastest way to compare policies is to go online to request quotes. You can do so by going to different insurers’ websites individually or using a price-comparison platform.

Most forms will ask for your contact information and information about who lives in your home and whether you run a home-based business. It might also ask about your current policy, your claims history, and information about your home’s structure, style, and size, as well as any improvements you’ve made and safety devices you’ve installed.

4. Buy your new policy

Before you buy a policy, check with your lender or mortgage servicer about what’s required. The homeowners policy must meet the lender’s requirements. Otherwise, it could violate the terms of your mortgage loan.

You can purchase the policy as soon as you have the mortgage lender’s OK. Read the policy one final time to make sure you understand the coverages, limits, and exclusions before — or contact the company to speak with an insurance agent who can answer your questions. Then follow the quote’s instructions for completing the purchase.

You might be able to complete your purchase simply by clicking an “accept” button on the website and providing payment information.

5. Cancel your old policy and notify your lender of the change

After confirming that your payment has been accepted and the new policy is active as of the effective date, go to your account on your old insurer’s website or call the insurance agency directly to cancel the policy. The company will refund unused premiums you’ve paid if you’re canceling before the end of the policy term.

Next, call your lender to provide your new policy information.

When you can change homeowners insurance

You can switch your homeowners insurance whenever you want.

The best time to make a change is when you’ve received notice that your premium is about to increase or that your coverage will change when your policy renews.

If you plan to change homeowners insurance companies at the end of your current policy’s coverage period, start shopping for home insurance quotes right away so you can have new coverage in place before the old coverage ends to avoid a lapse.

Can you change homeowners insurance with an open claim?

You can change homeowners insurance at any time — even if you have an open claim. This may be a good option if you’re unhappy with your coverage, want to find a cheaper rate, need a lower deductible for future claims, or find that you’re not having a good experience with how your current insurer is handling the claims process.

After you switch companies, your old insurer will continue to handle your claim under your previous policy until it’s settled or denied. But if you’re unhappy with your settlement, switching to a new insurer won’t change your compensation. And your new insurer may consider your claim history when quoting.

Pros and cons of changing homeowners insurance

While changing homeowners insurance could work in your favor, it’s not without possible drawbacks.

When it doesn’t make sense to change your homeowners insurance

You can switch homeowners insurance at any time, but it may not always make sense. Here’s a closer look at some reasons why you may want to stick with your current insurance company:

• No rate savings: If you’re unable to find a cheaper rate than your current policy, it may not be the right time to switch insurers.

• Lack of insurance products: If you can’t find a new policy that meets all your insurance needs, like home and auto, you may want to hold off on switching.

• Poor customer service reputation: While you may be able to save by switching to a new insurer, be sure to read customer satisfaction reviews first.

• You’re planning to move: If your house is on the market, it may be a good idea to hold off on changing insurers. Instead, you can compare policies and insurance coverage for your new home.

Home insurance and escrow accounts

Most homeowners pay for their homeowners insurance and their real estate taxes through an escrow account managed by their mortgage company. The lender then breaks the annual insurance and tax bills into monthly payments and adds the amount to the homeowner’s mortgage payment. The lender pays the bills from the escrow account as they come due.

Even though the lender pays the bills on your behalf, you’re responsible for the payment. It’s important to log into your mortgage account regularly to keep track of your premiums and verify that they’ve been paid.

What to look for in a new home insurance policy

Price is an important consideration when you’re shopping for home insurance quotes, but inexpensive insurance is only as good as the coverage it provides.

Before you switch, make sure the new policy offers enough protection for each type of coverage.2

Changing homeowners insurance FAQs