Homeowners insurance is a crucial aspect of the homebuying process. It not only protects your home and personal belongings from damage or loss, but it also provides liability coverage in case someone is injured on your property. If you’re in the process of buying a home, you may be wondering if you can switch homeowners insurance before closing. The answer is yes. In fact, it’s advisable to do so to ensure you have the coverage you need from the moment you take ownership of your new home.
Switching homeowners insurance before closing on a new home can be a confusing and stressful process. Below, we explain everything you need to know about changing homeowners insurance before closing, including the advantages of doing so and how to go about it.
Why You Should Switch Homeowners Insurance before Closing
There are several reasons you should consider switching homeowners insurance before closing on a new home, including these essential factors:
- Ensure adequate coverage – The insurance policy you currently have may not provide adequate coverage for your new property. If you’re moving to a different area, you may need a policy with higher coverage limits, or you may require additional coverage for specific risks, such as flood insurance. You need to have a clear understanding of the coverage offered by your current policy and the policy you are considering switching to. This will help you make an informed decision and ensure you have the coverage you need to protect your home and its contents.
- Save money – Second, changing homeowners insurance before closing can help you save money. By shopping around and comparing policies, you may be able to find a policy that provides better coverage at a lower cost. Additionally, many insurance companies offer discounts for customers who purchase multiple policies, so if you already have auto or life insurance with a particular provider, you may be able to save money on your homeowners insurance as well.
- Avoid gaps in coverage – Finally, switching homeowners insurance before closing can help you avoid any coverage gaps. If you wait until after you’ve moved into your new home, you may end up with a gap in coverage that leaves you vulnerable to damage or liability. By changing your policy before closing, you can make sure you have the coverage you need from the moment you move in.
How to Switch Homeowners Insurance Prior to Closing
Switching homeowners insurance before closing is a relatively straightforward process, but it does require some preparation and planning. Here are the steps you should follow:
- Research insurance companies and policies – Before you can switch homeowners insurance, you need to know what your options are. Start by researching insurance companies and policies online and asking friends, family, and colleagues for recommendations. Make a list of the companies and policies that seem most appealing to you and compare their coverage, costs, and customer reviews.
- Get quotes – Once you have a list of potential insurance providers, get quotes from each one. Make sure to provide them with all the information they need about your new home, including its location, size, and any special features. Ask about discounts for multiple policies as well as any discounts for things like smoke alarms or security systems.
- Review coverage – After you’ve received quotes from multiple insurance companies, compare the coverage and costs to see which policy is the best fit for you. Look at the coverage limits, deductibles, and premiums.
- Cancel your current policy – After you’ve selected a new insurance company, you should cancel your current policy. This can usually be done online or by calling the company. When canceling, get a confirmation number or written confirmation of the cancellation. This will ensure you have a record of the cancellation in case there are any disputes in the future.
- Notify your lender – It’s also important to make sure your lender is aware of the change in insurance coverage. This is because the lender typically requires proof of insurance coverage before closing on the loan. Your new insurance company will provide you with a certificate of insurance, which you’ll need to provide to your lender to show you have the coverage they require.
Taking the time to choose the right homeowners insurance policy before closing on your new home will pay off in the long run. Not only will you have the coverage you need, but you’ll also have peace of mind knowing you’ve made a smart decision to protect your home and personal possessions.
Following the tips above can ensure you have the right coverage for your needs. For reliable, affordable home insurance, San Diego homeowners know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and auto insurance. Request a free quote by calling one of our friendly agents today at (619) 404-6311.