Home Insurance: Auto-Renew Or Switch?

Home insurance policies typically renew automatically on an annual basis, though this is not always the case. Around 30 days before the renewal date, the insurance company will send a renewal notice to the customer, detailing any changes to the policy and premiums. If the customer is happy with the details of the renewal, the policy will be renewed for another term, usually 12 months. However, if the customer's needs have changed, they can choose to switch to another insurer.

Home insurance renewal notices

• Renewal notices are typically sent out by insurers 30-40 days before the policy term ends. This gives you a window of at least a month to review your policy and make any necessary changes.
• The renewal notice will inform you of your renewal date, any changes to your coverage, and your new premium. It will also ask if you wish to renew or reassess your coverage.
• If you do not respond to the renewal notice, your policy will typically automatically renew on the stated renewal date, provided you have sent in your premium payment by the due date.
• However, if you want to change coverages or policy limits, you will need to notify your insurer before the renewal date. They will then send you a revised policy and premium quote to sign before the policy is renewed.
• Renewal is also a great time to shop around and compare quotes from multiple companies to make sure you are getting the best deal.
• It is important to review the details of your policy, such as your address, the names of insureds, and your payment method, to ensure they are all correct.
• If you have made any significant changes to your home or possessions since the last renewal, be sure to inform your insurer. This includes renovations, major purchases, or new occupants in your home.
• Renewal is also a good time to reconsider your deductible and see if there are any discounts available to you.
• If you decide to switch insurance companies, be sure to notify your current insurer of your non-renewal as soon as possible and set up your new policy before cancelling your existing one to ensure continuous coverage.
• Keep in mind that if you cancel your policy before the term is up, you may be charged a penalty.

Renewal and cancelling your contract

Home insurance renewal usually happens automatically, but it's still a great time to review your policy to see if you can find better coverage or cheaper rates elsewhere. Your insurance company will typically send you a renewal notice 30–40 days before your policy term ends. This letter or email will inform you of your renewal date and the details of your policy, and ask if you wish to renew or reassess your coverage.

Failure to respond to this notification is an indication that you've read the letter and agreed to the terms: they will automatically renew your policy on the stated renewal date. This means you have a window of at least a month to take a deeper look at what is insured in your home. If you fail to inform your insurer of any changes to your home or possessions, you could be underinsured in the event of fire, theft, or natural disaster.

If you're content with your current policy, you can wait for it to automatically renew for another term (usually 12 months). Or, if your needs have changed, you can shop around for other policies from different insurers. You can update your policy at any point during your policy term. However, when it comes to renewal time, it may be worthwhile to look around for other policy options that better align with your current needs.

If you want to cancel your current policy (which you can do at any time, not just at renewal), you must send a written notice to your insurance agent or broker. However, you may be charged a penalty, which increases the longer the remaining policy term is.

Your insurer may also decide to cancel your insurance policy if, for example, you have not paid your premium. If this is the case, your insurer must send you a written notice, and the cancellation will take effect 15 days after the notice is received. The insurer will reimburse you for any unused premiums.

Renewal and home improvements

Home insurance is typically renewed annually from the date you purchased or last renewed your policy. While it does renew automatically, it is important to stay vigilant and not ignore renewal notices. Renewal is a great time to review your policy and ensure that it is up-to-date and still meets your needs.

If you have made any home improvements or renovations, it is important to inform your insurer. This includes any major purchases, new appliances, kitchen and bathroom upgrades, or structural changes such as building an addition or installing a pool. These changes can impact the replacement value of your home, and you will want to ensure that your policy reflects the current value. Some renovations, such as installing a home security system or a new roof, may even qualify you for discounts or lower premiums.

In addition to home improvements, there are other life changes that you should notify your insurance provider about. This includes new occupants moving into your home, changes in your mortgage provider, or if you have started working from home. It is also important to verify the names of all individuals living in your home, your address, and your payment method during renewal.

By staying proactive and keeping your insurer informed, you can ensure that your policy accurately reflects the value of your home and your insurance needs. This will help protect you, your home, and your belongings in the event of any damages or claims.

Renewal and changing providers

Home insurance policies typically renew automatically every year from the date you purchased or last renewed your policy. A few weeks before your renewal date, your insurer will send you a notice with your updated policy terms and your new premium. If you're happy with your current policy, you can let it auto-renew for another term, usually 12 months. However, if your needs have changed, you can shop around for other policies from different insurers.

When it comes to renewing your home insurance, it's important to review your existing policy and ask yourself the following questions:

• Does my current policy still meet my needs?
• Do I need more or less coverage?
• Have I made any changes or improvements to my home that will qualify me for discounts or savings (e.g., installing a home security system, a new roof, etc.)?
• Have I switched mortgage providers since I purchased or renewed my current policy?

You don't have to wait until your policy renews to make changes. You can usually update your policy at any point during your policy term. However, when it's time for renewal, it's a good opportunity to look around for other policy options that better align with your current needs.

If you decide to switch to a new insurance provider, here are the steps you should follow:

• Review your existing policy: Understand the details of your current policy, such as your coverage limits and deductibles, to make an informed decision when changing providers.
• Decide if switching is the right move: Consider the potential long-term implications of switching and ensure you're not sacrificing important protections for a lower price.
• Time your switch well: Avoid a gap in coverage or paying for two policies simultaneously by timing your switch correctly. Check your current provider's policy for any early cancellation fees or penalties.
• Gather the information you need to get quotes: Personal information, home details, security features, building details, insurance history, etc.
• Shop around for quotes from multiple insurers: Compare quotes from at least three insurers and consider factors such as customer service reputation, financial stability, coverage options, claims process, discounts available, policy exclusions, and renewal terms and conditions.
• Narrow down your insurer and policy options: Consider factors beyond just the rates, such as billing plans, deductibles, and date of effectiveness.
• Secure the new policy: Decide on the coverages you need, check for bundling possibilities, and pay for your new policy before canceling your old one.
• Cancel your old policy: Communicate your intent to terminate your current policy and provide the necessary information to your current provider.
• Notify your lender of the change: If you have a mortgage, inform your lender of the change and provide them with the relevant documentation.

Renewal and payment methods

Home insurance policies typically renew automatically, usually annually, and your insurance company will notify you of this. However, unlike auto insurance, home insurance policies are not always automatically renewed. You will usually receive a renewal notice 30 to 40 days before your policy term ends, and this will include your renewal date and policy details. If you are happy with the details of the renewal, your insurer has a valid payment method on file, and you pay your premium by the due date, your policy will renew automatically for another term.

It is important to review your policy details when you receive your renewal notice. Small mistakes can occur, so check that details such as your address and the names of those insured are correct. You should also consider any big changes you have made since your last renewal, such as renovations or big-ticket purchases, and check that your coverage limits are high enough for any additions. You should also review your payment method to make sure it is up to date. If you wish to change your payment method, inform your insurer before the renewal date.

If you would like to change your coverage or policy limits, your insurer will send you a revised policy and premium quote to sign before your policy is renewed. If you decide to switch insurance companies, your policy will expire on the end date listed on your home insurance policy declarations page.

You can cancel your home insurance policy at any time, not just at renewal time. However, if you cancel between renewals, you may be charged a penalty. If your insurance company decides to cancel your policy, they must give you advance notice, usually at least 30 days.

Frequently asked questions