How Do I Cancel My Homeowners Insurance?
July 12, 2015How Does Homeowners Insurance Escrow Work?
July 14, 2015Switch Homeowners Insurance – For most homeowners, insurance is a necessity that is purchased and left alone! However, there may come a time to cause you to change carriers either by force or by choice; as we know, insurance appetites change and premium rates change accordingly.
Whatever your reason for the desire to change carriers, it is most important to maintain your primary goal which is the protection of your assets! What use would it be to lower your premium by $100 simply to end up in a situation where you may have to come up with thousands of dollars in the event of a loss?
You will need to obtain home insurance quotes from a few reputable insurance carriers in order to directly compare your present coverage to what’s available in the current market. This is also an opportunity to adjust coverage to your desired level.
It is important to purchase your new home insurance policy well in advance (30 – 45 days ahead of the expiration date of your present policy). The new policy must be made effective on the same date that your current policy expires in order not to either cause a lapse or cause you to have overlapping insurance. Policies are all effective and expire on 12:01 a.m. local time of the date listed on the Declarations Page; thus, you’ll simply use the same date for your new policy.
If the change of insurance companies is by your choice, you’ll simply fax, E-Mail or Snail Mail a signed cancellation request to your present insurance company; they will in turn send you a Cancellation Notice confirming your request.
You must make sure that your new insurance company has the correct Mortgage Loss Payee Clause listed on the policy; this is your Mortgage Company’s desired way of displaying their name, address and account number on insurance policies. Accordingly, insurance carriers will mail a copy of the policy and any future correspondence to the listed mortgagee. (The mortgagee address to be listed is not the same as your mortgage payment address)
During the quote process, you may wish to reduce your premium by increasing the deductible to your desired level; a higher deductible calculates a lower premium rate. There are also many policy discounts that are available; these depend on the State and options available. In the majority of States, insurance companies use Credit Scoring as a rate calculation criteria; thus, a better credit score will generate a lower rate.
If for any reason you are unable to purchase insurance in the preferred market, the mortgage company will place a forced insurance policy on your account thus providing limited coverage on the home to protect the interest of the mortgage company in the event of fire or perhaps some additional perils. This is by no means your desired plan of action, it is usually costly and available as a last resort.