Do you have homeowners insurance? Is your policy inadequate, or you intend to reduce coverage?
Changing your homeowners policy is something that you can do anytime. There are many good reasons, usually remarkable life events, that could necessitate the change. You could be shopping for home insurance because most mortgage lenders require you to buy some type of homeowners coverage before closing. However, switching homeowners insurance and changing homeowners insurance after a claim may seem more difficult.
If you are considering a review of your policy, here is how you can change your homeowners insurance in few simple steps.
1. Read Through Your Existing Policy
Reading your policy informs you about any agreements made between you and your insurer and what type of coverage is currently included. Check your current homeowners insurance declaration page for specific terms and conditions regarding termination and effective dates.
2. Coverage Needs Above All Else
You need to think critically and assess your needs even if you plan to transfer your policy coverage, limits, and deductible to another insurer. You wouldn’t know if there is a change or available discount if you do not inform your insurer about all applicable changes and information regarding your home. Informing your insurers helps to streamline your needs, and possibly save some money.
3. Compare Different Insurance Companies
Similar to comparing homeowners insurance rates from different insurers, it’s important to check the reputation of the insurance carrier and customer service availability as well as get quotes with matching coverages, limits, and deductibles. Check your policy declarations page for your current coverages, limits, and deductibles.
4. Start Afresh
According to the National Association of Insurance Commissioners (NAIC), it’s important to have a new home insurance policy in place before canceling the existing one to avoid a lapse in coverage. Ensure that the cancellation date is on or after your new policy’s start date when notifying your previous insurer about canceling or renewing your policy. After notification, ensure that you get a reply confirming that your policy is canceled and will not be renewed automatically. Also, ask if there will be a refund, especially if you paid in advance and you cancel your policy before the term year.
5. Let Your Lender Know
If you put less than a 20% down payment on your mortgage loan, your lender may manage an escrow account that disburses for property taxes and your homeowners insurance. Your monthly mortgage payment is dispersed through the saving platform. According to NAIC, you need to notify your lenders that you have changed your insurer to redirect your premium payment appropriately. To notify your mortgage company, provide a copy of your homeowners insurance declarations page and the former policy’s cancellation notice.
How Often Should You Change Your Homeowners Insurance?
Homeowners policies typically last for a year. When the term is about to expire, you will receive a renewal letter for the same. This allows you to review your insurance and make the necessary changes (including changes in rates).
With these steps, changing homeowners insurance becomes easy. If you want to learn more about a homeowners insurance policy, contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. We are ready to assist you with all your coverage needs today.