Home Insurance Articles
When To Cancel Your Home Owners Insurance Policy
2010-08-16
Knowing when to cancel home insurance isn't as easy as it seems. There are more than a few things to consider. The most important thing to keep in mind is at all times you want your home to be protected. The world is an unpredictable place and if you aren't careful your home could end up with problems and you could end up paying for is because you didn't have home owners insurance. So, if you are toying with the idea of cancelling your insurance then you need to time it right.
The first and most important thing is not to cancel home insurance if you don't have another policy in place or a policy that is ready to start the same day. A day or two without home owners insurance seems harmless enough, but it only takes one day for a fire, heavy rains or a burglar to make that insurance worth having and to make you feel lost without it. So make sure you have insurance before you get rid of it.
Another good opportunity to cancel your home owners insurance is when you find a cheaper premium somewhere else, but with the same coverage. It's not worth it to cancel your insurance and go with a cheaper premium if you won't be getting the coverage that is best for your home. However, if you do find the premiums for the same level of coverage are better someplace else, then you would be wise to take it. Insurance companies will raise premiums for all kinds of reasons, the most popular being because of claims you filed on your policy in a calendar year. If that happens and the monthly cost gets to be too big for your wallet then you should look elsewhere for better coverage.
The other reason to cancel is when you find your insurance company is no longer paying out on claims. When you file a claim the last thing you want to do is wait forever for the insurance company to pay for you the damage that was caused to your home. So, when an insurance company drags their feet it's appropriate to consider looking elsewhere to a company who is willing to pay out. You pay your premiums so that when something happens to your property, like a flood, or an infestation of termites occurs, you want to be compensated for it. Just like car or health insurance, the paying out on claims made must be a top priority for all policy holders. There is just no reason to settle for sub-par home owners insurance in the day and age.