How to switch your home insurance in 7 simple steps (and save money)

If you’re thinking of breaking up with your insurance provider, you’re not alone. The “It’s not you, it’s me” conversation might actually be warranted when your premium keeps climbing while your coverage stays the same. Indeed, home insurance companies bank on their customers’ inertia — sometimes changing providers is exactly what you and your home need.

But remember, it’s not just about price. Stephen Poux, EVP of risk management at the Liberty Company Insurance Brokers, cautions: “While there are substantial price differences between carriers in today’s market, the goal shouldn’t be just finding a cheaper option, but rather finding the most suitable coverage that provides protection against all potential risks, including more frequent and severe catastrophic events.”

With that in mind, here’s what you need to know to ensure that your switch — for whatever reason — is as smooth as possible.

Can you switch your homeowners insurance provider?

Yes, you can switch to a new homeowners policy — even in the middle of your policy term. Unlike some other types of insurance, many homeowners insurance policies typically allow you to cancel at any time and get a refund on the unused portion.

However, some smaller insurance companies may charge a cancellation fee, called a short-rate fee, so be sure to ask if your insurer charges a cancellation fee before investing in a new policy.

💡 Expert tip: Even if you’ve currently bundled your home and your auto insurance with the same company, you can still shop around. You might even find that separating your policies can actually save you money if another insurer offers better rates on homeowners coverage.

What if I have an escrow account?

If your home insurance premium is paid through an escrow account with your monthly mortgage payment, you can switch insurers, but you’ll need to take these five steps to ensure a smooth transition.

Call your mortgage servicer. Ask your servicer or mortgage lender if it has specific protocols you need to follow when switching companies — for example, you may need to complete specific forms related to this process.
Get the mortgagee clause from your servicer. This includes your lender’s official name and specific address that goes on your insurance documents specifying the lender as the mortgagee (or lienholder) on your property.
Let your mortgage company know about the switch. Your servicer will need to update their records and direct payments to your new homeowners insurance company. If they notice your old policy was canceled without a replacement, they’ll add forced-placed insurance on your loan — which can be expensive.
Coordinate the timing of the switch. Make sure that your new policy takes effect on the day the old one is canceled. For example, if your old policy is set to cancel on January 1, 2026, make sure the new policy starts on January 1, 2026, at 12 midnight or sooner.
Provide the declarations page to your mortgage servicer. This document proves that you have current coverage on your home with your new insurer.

💡 Expert tip: Getting the mortgagee clause exactly right is crucial. Even small errors in how your lender is listed could cause problems with premium payments and delay policy renewals, possibly leading to an unexpected cancellation.

Is it time to break up with your insurer? Take this quiz

Wondering if it’s time to explore new insurance options? Answer these questions to see if you should be shopping around for a better homeowners policy.

Has your premium increased in the past year? If your premiums have steadily increased due to factors beyond your control, shopping around makes sense. The national average effective rate increase for homeowners insurance was 10.4% last year, with 33 states experiencing double-digit rate increases, according to data from S&P Global.
Have you been with the same insurer for years? If you’ve been with the same company out of convenience or habit, you might be surprised to find that calling around and getting new quotes could save you hundreds of dollars.
Have you experienced significant life changes recently? Retirement, downsizing your home, paying off your mortgage or becoming eligible for new age-based discounts can all impact your insurance costs. Some insurers offer senior discounts on their home and auto policies.
Has your credit score improved in the last few years? If your credit score has improved significantly since you first purchased your policy, you may qualify for better insurance rates now. As with car insurers, most home insurers evaluate your credit score when determining your premium, so it’s worth calling around.
Have you made home improvements? If you’ve made significant improvements to your home, like adding a new roof or installing a security system, you may qualify for discounts ranging from 2% to 15%. Start with our guide to the top home security upgrades that can lower your premiums.
Has dealing with your insurer been frustrating? If an insurance company has given you more grief than joy, it may be time to consider switching providers. While all insurance providers attract complaints, some companies ranked higher in 2024, including Chubb, AIG and Amica, according to a 2024 J.D. Power study.

✅ If you answered Yes to one or more questions, it may be time to shop for a new home insurance policy.

💡 Expert tip: The best time to start looking for a new policy is about 30 to 60 days before your existing policy’s renewal date. This gives you plenty of time to research other options, gather quotes and make the switch without feeling rushed.

7 steps to switching to a new home insurer

Gather multiple quotes. Get quotes from at least three different insurance providers, including an independent agent or broker, to compare rates and coverages. Have your current policy declarations page and information about your home’s construction, age and features on hand when you gather quotes.
Compare coverages side by side. Compare your current policy and each quote side-by-side to see how they differ. Verify policy limits and exclusions, and pay attention to deductibles, coverage for specific perils like water damage, floods and earthquakes, and whether personal property is covered at replacement cost or actual cash value.
Identify coverage gaps or needs. Determine if the new policy adequately protects your home and belongings. Consider whether you need higher coverage limits or endorsements for specific risks in your area, like floods or earthquakes, or for valuable items that a standard policy won’t cover.
Ask about discounts. Inquire about all available discounts, including discounts for security systems, bundling policies, remaining claim-free or savings through senior, professional or alumni association discounts, like the AARP.
Review the new policy carefully. Before signing, ensure the new policy provides at least the same level of coverage as your old one and that you understand any differences between the two policies.
Purchase your new policy. Once you’ve selected your new insurer, complete the application process and pay the premium. Your new insurer will provide you with proof of insurance by email, regular mail or both.
Cancel your old policy. On the day your new coverage takes effect, arrange to cancel your old policy in writing. Specify the cancellation date to match the effective date of your new policy to avoid any gaps in coverage or overpayments.

What to consider before switching your policy

Before finalizing your decision to switch home insurance companies, make sure you’re considering these key factors about the new company and your coverage:

Financial stability. Make sure your new insurer has strong financial ratings from consumer insights agencies like A.M. Best and J.D. Power. Look for companies with financial strength ratings of A or better, which suggests they have the capital reserves to pay claims when disaster strikes, even for catastrophic claims.
Claims process. Research the reputation of potential new insurers for handling claims handling. A company that makes the claims process difficult could negate any savings on premiums. Read reviews with the Better Business Bureau website, Trustpilot and Google to get a sense of how easy or difficult a company is to work with at claims time.
Cancellation fees. Though typically uncommon for homeowners insurance, check if your current policy has any cancellation penalties, especially if you’re canceling before your policy is up.
Coverage amount differences. Don’t focus solely on premium costs. A lower-priced policy might exclude coverages that are important to you, such as full replacement costs for personal belongings.
Local presence. Some homeowners prefer to have a local insurance agent to work with, one they can meet face-to-face to discuss coverage options and questions, if needed.

5 steps to take after you’ve switched home insurers

Confirm your coverage. If you have a mortgage escrow account, call your mortgage servicer to make sure they’ve received and processed your new insurance information and know when to start paying premiums to the new company.
Document any refunds. If you received a refund check from your previous insurer for the unused portion of your premium, keep documentation of this refund for your records. You might need to reference it if there are questions about your escrow account balance.
Update your records and auto-payments. If you were paying your old insurer directly (and not through escrow), update any automatic payments to your new insurance company, updating your financial records and budget to reflect the new premium amount.
Create a home inventory. With your new policy in place, take time to create or update your home inventory. Take photos or videos of your belongings, focusing on valuable items, and store this documentation in a secure location outside your home or by using a cloud storage service.
Set a reminder for review. Mark your calendar to review your policy annually, even with your new insurer. Insurance needs change over time, and regular reviews ensure your coverage keeps pace with your life.

Other ways to save on your home insurance

Consider these strategies to keep your homeowners insurance affordable without sacrificing protection:

Increase your deductible. If you have enough money in emergency savings, raising your deductible is one of the best strategies for saving money on your premium. Any savings can also be used to purchase additional coverage where you may have gaps.
Improve home security. Installing security upgrades like leak detectors, a monitored security system or interconnected smoke detectors may qualify you for discounts of 2% to 15% on your premium.
Make age-related improvements. Updating your roof, electrical system or plumbing may reduce your policy’s premiums, especially for older homes.
Bundle remaining policies. Even if you’ve separated some insurance policies, bundling your remaining policies — like auto, boat and motorcycle insurance — may provide additional savings.
Check for group discounts. Memberships in organizations like AARP, alumni associations or professional groups might qualify you for special home insurance rates.

💡 Expert tip: Remember that the cheapest policy isn’t always the best value. The right insurance protects your home and financial security while providing peace of mind. As Poux advises: “One strategy I find highly effective is to increase deductibles and redeploy any savings to plug gaps in coverage or purchase higher limits of protection — such as higher limits of umbrella coverage — particularly in states like Florida.”