If you're looking to save some money by switching your homeowners insurance, you're not alone—insurance rates have been rising, and finding a better deal can mean significant savings. But before you dive in, there are a few important things to know. Switching insurance isn’t just about finding a lower premium. You’ll need to follow a few steps to avoid any headaches down the road. Here's everything you need to know to make the switch smoothly and unlock those potential savings.

1. Start by Reviewing Your Current Policy

Before you get too far into the process, take a close look at your current insurance policy. It’s important to understand what you're paying for now. Are you happy with your coverage? Are there areas where you could scale back or need more protection? Knowing the details of your current policy will help you compare new quotes effectively.

Also, pay attention to when your coverage term ends. Timing matters when switching insurance, especially if your mortgage company manages your payments through an escrow account (more on that in a bit).
 

2. Shop Around for the Best Rates and Coverage

Once you've reviewed your current policy, it's time to shop around. Look for insurance companies offering the coverage you need at a better price. Remember, cheaper isn’t always better—make sure the new policy provides the right protection for you.

A lot of people can save big when they switch but always keep in mind that different companies offer different perks. Some may bundle discounts if you combine your homeowners insurance with auto or other policies, while others may offer loyalty discounts if you’ve been with them for a long time.
 

3. Let Your Mortgage Servicer Know About the Switch

If you decide to switch insurance companies, you must notify your mortgage servicer directly. Whether your loan is escrowed or not, we need proof of your new insurance coverage on file.

Here’s how it works: once you've chosen a new insurance provider, they’ll likely ask for details about your mortgage company. You can provide them with this information, but remember that you are responsible for ensuring your servicer is notified. This step is crucial to make sure we have the correct documents, and it helps avoid any interruptions in your coverage or potential issues with payments.
 

4. Timing Is Key for Escrowed Loans

If your mortgage payment includes insurance (meaning it’s escrowed), timing is everything. Here’s what you need to know based on when you decide to switch:

• Switching around the time your premium is due: This is the easiest situation. If you're switching when your annual premium is about to be paid, just send us the new bill, and we’ll pay it out of your escrow account like usual.
   
• Switching in the middle of your coverage year: Things get a bit more complicated if you switch insurance companies mid-term. Let’s say your current policy runs from May to May, but you decide to switch in September. You’ll need to pay the new premium out of pocket since your escrow account doesn’t have enough funds to cover a second payment in the same year.
   
• After you make that payment, you’ll need to contact your old insurance company to cancel the remaining months of coverage. They’ll refund you for the months you’re no longer covered under their policy. Remember that even if your new insurance is cheaper, your escrow payments won’t immediately go down. We won’t reanalyze your escrow until the next escrow analysis period (usually once a year), so your payment adjustments may be delayed.
   

5. Stay Ahead of the Game—Contact Us Early

We’re here to make sure switching your homeowners insurance goes smoothly, but we need to know about it. If you're thinking about switching, give us a call first. We can walk you through the details and help you figure out how the timing of your switch might affect your mortgage payments and escrow account. Our team can also make sure we have all the documentation we need to avoid any gaps in coverage or payment issues.
 

6. Avoid Surprises Down the Road

Switching homeowners insurance is a great way to save money, but it’s important to do it right. Keeping your mortgage company in the loop, timing your switch carefully, and making sure your escrow account is updated are key steps to ensuring the transition is seamless. By following these steps, you can avoid unexpected surprises and enjoy the savings!
 

Final Thoughts

At the end of the day, saving on your homeowners insurance can be a smart financial move—but it’s not something you want to rush. Take the time to review your current policy, shop around for the best rates, and make sure we’re in the loop if you decide to make the switch. And don’t hesitate to give us a call—we’re here to help every step of the way!