How to switch home insurance companies

Whether you're looking for better coverage, lower costs, or better customer service, well help you understand the process of changing which company you get your home insurance from.

Why switch home insurance companies?

There are several reasons why people switch home insurance companies

• Insurance needs change: We know life can change fast. Whether big or small, here are a few common reasons to shop for new home insurance
  • Moving to a new home
  • Putting on an addition
  • Finishing a basement
  • Installing a pool
  • Getting a new dog
  • Buying a trampoline

  You may be wondering about a few of these, but some insurance companies may not cover homes with certain breeds of dogs, or a new addition may cause insurance rates to go up.

  Life changing events are a good reason to review your current coverage and see if it is still a good fit. If not, you may want to look into updating your coverages or shopping for a new insurance company that better suits your needs.

• Lower premiums: There's no harm in getting new home insurance quotes every year just to make sure you're getting the best deal. A different company may offer the same coverage at a lower cost—it's worth taking a few minutes to get some online quotes to check.
• Improved customer service: Simply put, not all companies have the same level of customer service. Many people switch insurance companies after being unhappy with the customer support or a claims outcome they received.
• Bundling options: Some insurers provide discounts if you bundle home insurance with auto or other types of insurance and these options will vary by insurance company. While getting quotes, if you don't see the insurance bundling option you need online, you may want to call. They may offer more options over the phone, than what's online.

Are there any downsides to switching home insurance companies?

Usually, there are few if any downsides to switching insurance companies for your home insurance.

Some insurance companies might offer discounts for long-term customers, but on the other hand, you may save more from discounts from other insurers. It's always a good idea to compare your options and consider both short-term and long-term benefits before making a decision.

Follow the steps below to learn more about what to consider when shopping for a new home insurance company.

The process of switching home insurance companies

If you're thinking of switching home insurance companies, these are typically the 5 steps to follow

1. Review your current home insurance policy and contract: Check your current coverage, deductibles, limits, and premiums. Understand what you have before shopping around. You may want to ask yourself, do I want to keep my coverages the same or change my coverages, deductibles, or limits?
2. Compare quotes: Make sure to get quotes from multiple insurers to compare coverage options and premiums. Don't just look at the cost; make sure you understand exactly what the coverages include at each company. There will likely be slight differences for each policy.
3. Choose your new policy: Once you find a policy that fits your needs, make sure the new policy is approved and active before canceling your current one to avoid any lapse in coverage. Make sure to understand any cancelation fees, or refunds you may be due from the policy you are planning to cancel.
4. Notify your current insurer: Tell your current insurance company you want to cancel your current policy. Make sure you get confirmation in writing.
5. Coordinate the transition date: Set an effective date for your new policy that aligns with the cancellation of your current policy. This ensures continuous coverage and prevents gaps in coverage since even a single day without insurance could leave you vulnerable to potential risks.

Switching home insurance companies when you have an escrow account

If you pay your home insurance through an escrow account, make sure you take these 3 additional steps

1. Inform your mortgage lender: Let your mortgage company know that you're planning to switch home insurance companies. They'll need to update your escrow account with your new insurance information.
2. Provide new insurance details: Submit the new policy's declaration page to your mortgage company. This document contains essential details about your new coverage. It may be available online for you to download from your insurance company.
3. Adjust escrow payments: Your escrow account will be adjusted to incorporate the cost of your new home insurance policy. Depending on whether the new premium is higher or lower, your monthly mortgage payment may change.

Pro tips when switching home insurance companies

While the process of switching home insurance companies is straightforward, these tips can help you decide on a new insurance company and help the process of switching smoother.

• Evaluate financial ratings: Check the financial strength of insurance companies you're considering. A company's financial rating, often provided by agencies like A.M. Best, Standard & Poor's, or Moody's, indicates their ability to pay out claims.
• Keep records: Document all interactions and transactions with both your current and new insurance carriers for a seamless transition and to help resolve any issues that might come up.
• Ask about discounts: Ask about discounts from both your current insurers (maybe you don't have to switch!) and new insurance companies you're getting quotes from to potentially lower your premium.
• Consult your state's Department of Insurance (DOI): Each state has a DOI, or similar, that provides valuable resources and recommendations regarding home insurance, and insurance in general. Visit your state's website to understand any specific coverage requirements or recommendations for choosing insurance companies and coverages.

• Consider more than just the price: While it can be tempting to go for the cheapest home insurance policy, the lowest premium may not mean the best coverage.

  Evaluate the comprehensiveness of the coverage, deductibles, customer service quality, and claims process. Consider reading reviews and testimonials from other policyholders to gauge their experiences. It's better to invest in a home insurance policy that has good protection and reliable service rather than just focusing on the cost.

If you're thinking of switching insurance companies, get an online home insurance quote from Liberty Mutual and only pay for what you need.