How To Change Home Insurance - 2026

Learning how to change home Insurance is a straightforward yet detail-sensitive process, and making the switch can be an effective way to align your policy with evolving coverage needs, lower your premium, or secure better customer service. This page explains the required steps, timing considerations, impacts on policy limits, and best practices for updating homeowners or renters insurance, including the role of escrow and how to avoid lapses in coverage during transitions.

Who This Policy Is For & Eligibility

Homeowners with an active home insurance policy seeking improved coverage, more favorable premiums, or better claims service.
Mortgage holders, as most lenders require continuous homeowners insurance meeting minimum standards throughout the loan term.
Escrow account users whose lender pays insurance from their escrow for property tax and insurance obligations.
Renters or condo owners looking to change their renters or condo insurance policy (steps are similar but may have different coverage details).
No special restrictions on eligibility—any policyholder may request a change at renewal or mid-term, but verify timing with lender and current insurer to avoid penalties or gaps.
Note: Changing home insurance is possible at any time; however, cancellation fees, refund policies, and notification requirements vary by insurer and state. Always check with your state insurance department (official homepage) for up-to-date rules and rights.
For the most recent changes and deadlines, confirm all details with your current insurer, new insurer, and your mortgage lender if escrow is involved.

Key Facts (At-a-Glance)

Item	Details
When to Switch	Anytime (best at renewal); review notice period and avoid lapse
Required Notice	Insurer/lender may need 15–30 days; varies by contract/state
Escrow Process	Lender must be updated to pay new insurer from escrow account
Premium Refund	Unused premium is generally refunded after cancellation
Policy Limits	Verify updates for dwelling, personal property, liability, loss of use
Coverage Gaps	Never cancel old policy before new coverage is active
Lender Requirements	Mortgage clause forms and minimum coverage requirements apply
Renewal vs Mid-Term	Allowed both at renewal and mid-policy; refund/cancellation fees possible mid-term
Verification	State insurance department or NAIC consumer resources (official homepage)

Step-by-Step Guide: How to Change Home Insurance

Review Current Policy and Timing: Understand your present coverage, premium, deductible, policy limits, and endorsement(s). Check upcoming renewal dates and required cancellation notice (commonly 30 days, but varies).
Gather Quotes and Compare Coverage: Obtain competitive quotes from licensed insurers. Look beyond just premium—assess replacement cost vs actual cash value, liability, loss of use, and personal property coverage. Account for endorsements and exclusion differences.
Confirm New Policy Details: Ensure the new policy meets lender requirements (mortgage clause naming your lender, coverage limits) and aligns with your risk tolerance and asset values. Verify deductible levels and any new exclusions or waiting periods.
Initiate New Policy: Apply and confirm underwriting approval. Set a start date for the new policy that overlaps with the old one to prevent any coverage lapse. Request documents in writing before canceling your current policy.
Cancel Old Policy: Provide written notice to your current insurer per contract requirements. If mid-term, request a pro-rated refund of unused premium (minus cancellation fees, if any). If your policy is managed in escrow, instruct both current and new insurer on the effective change date.
Notify Your Lender (if Escrow): Send your lender (or mortgage servicer) the new policy documents and have them update their records. Request confirmation that future insurance payments will be sent to the new carrier from your escrow account. Double-check no gap occurs in payment or coverage.
Verify Confirmation: Get acknowledgment from both insurers and your lender. Check that your old policy is fully canceled, your new insurance is paid, and your mortgage company is listed correctly on the policy declarations page.
Review Final Bills/Refunds: Ensure any unearned premium refund is issued by the old insurer, updated paperwork is received, and escrow records are correct for the next cycle.

Important

This content is for educational purposes only. It is not insurance, legal, or tax advice.
Policy terms, eligibility, and pricing vary by state and insurer; verify details on official sources.

Pros

Opportunity to tailor coverage to current needs by adjusting dwelling, liability, or personal property limits.
Potential to lower premium costs by comparing insurers or switching to one offering discounts for security devices, bundling, or loss-free history (discounts not guaranteed).
Ability to add or remove endorsements, such as water backup or scheduled personal property riders.
Better customer service, digital claims process, or reputation for handling claims (varies by insurer).
Chance to upgrade from actual cash value to replacement cost settlement on home or contents coverage.

Cons

Potential risk of accidental lapse if old policy is canceled before the new policy takes effect.
Possible pro-rated cancellation fee or a period without coverage if transition steps are not perfectly timed.
May require lender involvement and paperwork if you have an escrow account.
New underwriting questions; additional home inspection or documentation may be needed for replacement cost updates.
Changes to coverage may not always reduce premium if new rating factors or risk tiers apply.

Costs & How Pricing Works

Premium is determined by dwelling reconstruction cost, location, deductible amount, home age, claim history, and coverage type (replacement cost vs actual cash value).
Discount eligibility is based on factors like bundled policies, alarm systems, claims-free records, new construction, or specific payment modes—note that not all discounts apply universally and are not guaranteed.
Endorsements and higher coverage limits typically raise premium, while choosing a higher deductible can lower premium but may increase out-of-pocket costs in a claim.
If switching mid-policy, most insurers refund unused premium after deduction of any cancellation fee (varies by insurer—check state rules or contact your state insurance department (official homepage)).
If paying through escrow, confirm that lender receives and processes the new invoice—delays can lead to late payments or policy lapse.

Coverage Optimizer Checklist

Review your dwelling coverage amount. Is it adequate for current rebuilding costs?
Check personal property sublimits and consider scheduling valuable items separately if exclusions or dollar limits apply.
Compare endorsements/riders for water backup, identity theft, earthquake, and others.
Assess your deductible amount and determine if it matches your liquidity and risk preference.
Evaluate liability and medical payments to others (are limits sufficient for today’s risks?).
Confirm exclusions such as flood or earthquake—in most U.S. states, separate policies are needed for those perils.
Update mortgagee clause/interest so lender is protected and policy is compliant with loan terms.

Perils, Endorsements & Exclusions

Standard policies cover named perils (e.g., fire, theft, wind, hail) or provide open-peril coverage for your dwelling—verify which your new policy uses.
Flood, earthquake, and water backup are common exclusions—coverage for these is typically available only by endorsement or through separate policies.
Jewelry, art, collectibles typically have sublimits; schedule valuable items or add endorsements as needed when switching policies.
Review waiting periods that might apply to new or modified coverage (especially after major disasters or for new water claims coverage).

Flood & Disaster Considerations

Flood is excluded from standard homeowners insurance. Consider a separate policy from the FEMA/NFIP flood insurance (official homepage) if your area is at risk.
In some regions, windstorm/hail may have a higher deductible—ask new insurer for specifics in coastal or tornado-prone states.
Earthquake coverage must usually be requested as an add-on or separately purchased policy; not all geographic regions offer or require it.

Claims & Documentation

Inventory your belongings and store receipts/photos; this will help if you need to file a claim under the new policy.
Ask your new insurer about process: adjuster assignment, required documentation, and how claims are settled (replacement cost vs actual cash value).
Ensure continuity—any open claims on the old policy should be resolved before cancellation. New claims after the switch are submitted to your new insurer.
In the event of a claim dispute, you may contact your state insurance department or use NAIC consumer resources (official) for complaint resolution steps.

Alternatives & Comparisons

Consider adjusting coverage with your current insurer instead of switching entirely if a coverage gap, exclusion, or premium is the only issue.
Renters insurance and condo insurance follow similar switch steps but adjust for master wall-in coverage or landlord requirements.
Ask both old and new insurers for a side-by-side comparison of coverage, exclusions, and price before finalizing the switch.
If changing due to home renovation, security addition, or new valuables, review if just adding endorsements will suffice versus replacing the entire policy.

Side-by-Side Comparison

Feature	Old Policy	New Policy	Other Option
Coverage Scope	Named-peril, $300K dwelling	Open-peril, $350K dwelling	HO-5, $400K dwelling
Typical Premium	$1,100 (sample)	$950 (sample)	$1,200 (sample)
Deductible	$1,000 (sample)	$2,000 (sample)	$1,500 (sample)
Exclusions	Flood/quake excluded	Flood excluded, water backup covered	No flood, scheduled jewelry
Claims Process	Phone/email; local adjuster	Digital claims, photo upload	Full service, in-home

Frequently Asked Questions

Can I change home insurance at any time?

Yes, you may change at any time, but mid-policy cancellation may involve fees or refund calculations.
A new policy should overlap with the old policy to prevent lapse.

What do I need to do if my mortgage has an escrow account?

Send new policy documents to your lender.
Request new insurer includes the lender as mortgagee.
Check that next insurance installment from escrow goes to the correct company.

Will I get a refund on my old policy?

Generally, a prorated (unused) premium is refunded after cancellation, less any fees per policy contract.

Could switching affect my coverage?

Yes, endorsements, exclusions, policy limits, or deductible structure may change; compare documents side by side.

Do I need a home inspection before switching policies?

Some insurers may require an exterior or interior inspection for replacement cost policies, or after recent renovations.

How do I contact my state insurance regulator?

You can find contact info and consumer help via your state insurance department (official homepage).

Conclusion & Next Steps

Changing home insurance involves a careful review of timing, coverage, documentation, and lender requirements if escrowed.
Start with a detailed comparison—focus on policy limits, premium, deductible, exclusions, and claims process.
Ensure new coverage is in place before old coverage is canceled.
If your mortgage is escrowed, coordinate directly with your lender to avoid payment or coverage disruptions.
Document all communications and request written confirmations.
For current rules, refund processes, cancellation fees, and official consumer protections, consult your state insurance department (official homepage) or FEMA/NFIP flood insurance (official homepage) for flood-related questions.