Article 4 of 6 in Understand Your Home Insurance Policy
If you want to know if you can cancel your home insurance at any time, then note that the process can be smooth and seamless. However, before you decide to cancel home insurance, there are some things that you need to know.
Can I Cancel My Home Insurance?
As a policy owner, you can cancel your home insurance at any time, especially if you sell your home or change companies. You need to keep the following in mind before you cancel home insurance:
TIP: Check your home insurance policy for any information about return of premium, short rate conditions, or fees and other penalties that may apply. Understand the consequences of your action before you do anything.
What to do before you Cancel Home Insurance
You should make sure you have the home insurance coverage you need from a new policy before you cancel an old one. Shop for a new policy prior to cancelling your old one by comparing several quotes. Take the opportunity to actually make sure you are getting a better deal by making the change by looking at all aspects of the new insurance policy. If the home insurance coverage is vastly different on the new plan, talk to your insurance agent or the insurance company representative and ask them to explain the difference. Do not leave yourself without some level of insurance to protect your home and belongings!
TIPS: Make sure you inform your mortgage lender of any changes to a home insurance policy. Typically a mortgage loan requires home insurance, and you need to keep the lender informed of any and all changes.
Cancel Your Home Insurance in Writing
Once you have established that canceling your home insurance is in your best interest, you should always put the cancellation in writing. Fax or mail a letter to your insurance agent or insurance company containing the following information:
TIP: The last point is especially important if you are canceling your home insurance due to the fact that you have sold your home and are moving. The insurance company will need a forwarding address to send your refund. If your cancellation date is thirty days or more in the past, you may be required to show proof of insurance to make sure that you are indeed entitled to that amount of unearned premium.
Canceling your home insurance can be easy. If you are not selling your home, make sure you have replacement coverage in place before you cancel. If you are thinking about canceling your home insurance, and need to find a new policy, click here to get a free quote today!