How Often Should You Re-Shop Your Homeowners Insurance?

Homeowners' insurance is a form of financial security that many individuals overlook after acquiring it while purchasing a new house. Insurance premiums are frequently included in your monthly mortgage payment, property taxes, and mortgage insurance. Homeowners insurance is a "set it and forget it" situation for some.

However, did you realize that you should look for homes insurance every year? Let's say your premiums increased by more than 10% at renewal, shopping around and comparing plans from several insurance companies is likely to result in a lower rate. If your prices have not increased significantly, consider re-shopping to see if you are missing out on a better bargain with another company.

How Frequently Can Homeowners Insurance Be Changed?

There is no limit to how frequently you can switch homes insurance carriers, but it is prudent to shop your coverage each year to ensure you are not missing out on a better offer.

You can cancel or switch insurers at any time - even in the middle of your term. Although you may suffer a modest fee, such as $25, for canceling your insurance early, most insurers will waive this amount. If you intend to switch policies, ensure that the effective date of your new insurance coincides with the expiration date of your current policy to avoid a coverage lapse.

Why You Should Compare Homeowners Insurance Quotes Each Year

Companies are progressively reevaluating rates and adjusting the cost of plans annually. The sector has been operating on narrower margins than ever in recent years due to record insurance claims for wildfires and other climate-related calamities. As a result, your premiums may increase as well.

If your premiums increased by more than 10% (for example, from $1,000 to $1,100), consider re-shopping your insurance to see if a competing carrier may offer you a lower rate. Comparing and shopping for plans can result in hundreds of dollars in annual coverage savings.

What is the Most Efficient Approach to Shopping for Homeowners Insurance?

When shopping for homes insurance, you'll want to cast a wide net and compare the cost and coverage of policies from large and small firms. The most effective way to accomplish this is by using a broker or independent agent who represents various insurance providers. However, make essential to inquire about the broker's compensation upfront - they may earn a commission for selling plans from a specific insurer that provides substandard coverage.