If you have had the same home insurance company for a few years now, you’ve probably noticed that every year the premium seems to go up by just a little. Year after year of little premium increases, however, can equal a lot of money over time. If you’ve had the same company for 3 years or more, it really is time to think about switching home insurance companies, or at least shopping the rate. There are four simple steps that should be followed when switching home insurance.
Step One: Fill Out Online Quotes
The fastest and easiest way to find out if your home insurance premium is still reasonable is to get at least 3 home insurance quotes. There are many companies today that allow you to fill out one easy form and receive multiple home insurance quotes from multiple companies. This is the quickest and easiest way for you to find out what market prices are and if it would be worthwhile to switch home insurance.
Step Two: Check Underwriting Guidelines
Assuming you’ve found a policy that you like and that saves you money, the next step is to make sure you are an insurable risk with the new carrier. The agent you’ve been working with through this whole process should do this for you, but many times agents forget to ask all the qualifying questions. Often it is your responsibility to make sure you are not an uninsurable risk. The most common reasons why a home insurance policy may get turned down are: really old roof, existing damage, vicious or dangerous dogs, trampoline, unfenced swimming pool or swimming pool with a diving board, ATVs, and odd or extremely old construction materials.
Step Three: Start Policy with Future Effective Date
After receiving home insurance quotes and checking the underwriting guidelines, you are ready to purchase the new policy. It is always best to choose an effective date in the future (a week or so) to ensure everything runs smoothly. If you fail to do this and there is a delay for any reason, you may be without coverage for a few days. If your home is in escrow, to start the new policy simply give the agent your loan number and who the loan is serviced through. If your home is not in escrow, simply make a down payment on the new policy.
Step Four: Cancel Your Current Policy
When switching home insurance, you are the only person that is authorized to cancel your current policy; your new agent, loan officer, or friend can’t do this for you. Depending on the company, you need either a written or verbal form of cancellation. If your home is in escrow, at this point you need to contact the loan company and inform them you cancelled your current policy and that a new agent should be contacting them. They may ask for his/her information as well. If you are out of escrow, simply call the insurance company and cancel, your work is done!
The process to switch home insurance is quick and easy. So field home insurance quotes, shop around, and start saving on your insurance!
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