Can you cancel home insurance at any time?
“In general yes a person can cancel any time they choose to,” Pope says. You are not required to notify the insurance company, although the reverse is not true. Your home insurance company can’t cancel your policy without notice.
Your home insurance policy is a contract, which affords you the right to cancel whenever you want. Sometimes, there may be a fee or penalty for canceling early. There’s nothing, however, that can stop you from canceling.
“Many companies have a policy fee that is non-refundable. Some companies have an early cancelation fee if you cancel the policy in the first term,” Pope says.
If you have a mortgage, you are required to keep insurance on your property. Before you cancel, have a new policy in place to avoid a lapse.
How to cancel homeowners insurance
To cancel your homeowners insurance, contact your insurance company and tell them you’d like to cancel and on what date you want it to be effective. With most companies, this can be done over the phone. Some companies may require you to send the cancellation request in writing.
Even if you want to cancel your policy at the end of the term, you need to notify the company. Most homeowners insurance companies will automatically process your renewal unless they have heard from you.
Do you get a refund if you cancel homeowners insurance?
After canceling homeowners insurance, you will get a refund if you have paid for the coverage in advance. If you pay monthly, there may be little to no refund.
Even if you pay your homeowners insurance through an escrow account with your mortgage company, the refund will still be sent to you when you cancel. If you are switching insurance companies and need to pay for the new coverage, contact your mortgage company to make sure there’s enough in the escrow account to cover the new premium.
When to cancel home insurance when selling a house
You should not cancel your home insurance until the sale of the house has closed and the house is legally the new owners' property. Until then, you are still responsible for the house and anything that happens on the property.
You can call your insurance company after the sale is complete and provide the date of the sale as the cancellation date, even retroactively.
