Can I change insurance companies every year?
While there is nothing preventing you from changing homeowners insurance companies every policy year, it is not always a good idea. It is certainly idea smart decision to shop around and verify that you are receiving the best coverage and most competitive rates, but not necessarily to change your policies and insurers every year.
Insurance companies strive to establish a relationship with their policyholders and provide incentives for them to renew their policies each year. For example, your insurance company may provide you with a discount on your home insurance policy if you also insure your automobile and personal umbrella with them. Some insurance companies may also provide discounts for policyholders who have not had a claim for a period of time. The insurance company is taking a risk on you when you are a new policyholder. Once that risk pays off, the insurance company views you as a good risk and wishes to keep your business by offering you discounts and coverage enhancements. If you continuously change insurers, you will miss out on any perks that come along with customer loyalty.