Do you know how to cancel your homeowner’s insurance? Most people just give up on finding a good policy without knowing how to cancel it. But don’t worry. Here are some tips to help you understand how to cancel your homeowner’s insurance policy.
Check with your new homeowner’s association. Some associations have different rules than others and you may qualify to have a policy transfer to another homeowner’s association. Go ahead and request the transfer to approve it and pay for it before cancelning your present policy. A new homeowner’s insurance plan typically takes around three to five business days to become effective so you need to buy the new one as soon as possible to prevent a lapse in coverage at your end.
Call every insurer you are considering. Find out how much each insurer charges and compare quotes from all of them. Once you’ve compared the quotes, make sure that the insurance rate is not going to increase after you move in. The national average for house insurance rates has been rising steadily, so you need to stay abreast of the changing national average in order not to be surprised when your new home insurer asks you to make a price change.
Make sure that your agent is getting paid. There is a common problem among insurance agents who get paid by commissions. They will be tempted to give you the best deal they can since commissions are usually based on your premium amount. If your agent knows that you’ll be paying more in premiums, he/she may try to talk you into getting insured through a company that pays more.
Choose a higher deductible. Your new home insurer might offer you a lower deductible. This will make your monthly premium less expensive, but you’ll have to pay that deductible before the insurance company will pay your claims. You need to know what the deductible will be before you commit to any insurer.
Check the dwelling coverage and loss limits on your policy. In the event of a fire or other disaster, you need to have enough dwelling coverage to replace everything damaged in your home. A high deductible does not always make for the best deal. You will have to weigh the cost of having enough coverage for rebuilding versus having to pay a deductible in the case of a disaster. You can reduce your premiums by increasing your deductible.
Ask insurance companies about discounts. New home owners often do not consider the possibility of multiple discounts. One example is that some insurance companies offer discounts for insuring more than one property. Others offer discounts for insuring both a residence and a car. Shop around to find the best rate for the most savings. Ask questions and read documents about discounts available so you’ll know which ones are available to you.
Review your homeowners insurance declarations page. If you’re changing to a new policy, review your existing policy to see what the new company’s insurance will look like. The declarations page will list the difference between your new policy and your old one. Review the details of the new policy to see if you’ll save money on your premiums.
Check on your medical payments and other expenses. If you or someone in your family has ever been injured at your home, make sure you or that person is covered by your current home insurance policy coverage. Some policies limit the amount of medical payments you’ll be eligible for. Others limit the amount of your credit card and other financial liability exposure when a medical emergency arises. Make sure your medical payments and other expenses are fully covered in your new policy.
Consider raising your deductible. If you want to lower your premiums, you may want to consider raising your deductible. If you raise your deductible, you’ll have to pay more money upfront. However, you’ll save money in the long run because you’ll be required to make sure your house is protected against a major loss.
Shop for discounts. Many homeowners’ insurance companies offer discounts to new customers who purchase coverage from them via their Web sites or over the phone. Find out what these discounts are and whether your company offers them. You may be eligible for a discount that can reduce the cost of your replacement cost coverage. For example, some companies discount the replacement cost coverage for houses that are located in hurricane-zone areas, have certain security features or have other protective features.