How often should you shop for home insurance?

When should you shop for home insurance?

Shop for home insurance annually at renewal, as well as when you're buying a new home, when you've completed renovations and when you're shopping for car insurance, so that you can compare bundles.

At renewal. When you get your renewal paperwork in the mail, review your coverage and rate, and then gather quotes to compare.
When you are in the process of buying a home. You will need home insurance to close on the purchase of your new home. Shopping as early as possible during the process will ensure you get the right coverage at a good price.
When you have work done on your house. Whether it’s fencing in the backyard, installing new floors, or installing a swimming pool, remodeling your house requires adjustments to your coverage that will affect your rates. Some changes increase premiums; others lower them. Adding hail-resistant roofing, for example, qualifies for discounts at many insurers. Get new quotes within 30 days of completing any significant project.
When you’re shopping for car insurance. When you shop for car insurance, ask each company to create a quote for your home. Most companies offer a discount for bundling home and auto insurance, and your overall insurance rate might be lower if you buy both in the same place.

What are the benefits of shopping for home insurance?

Shopping for home insurance primarily saves you money. Because insurers adjust rates independently based on local risk factors, your current insurer may no longer offer the lowest rate even if nothing has changed about your home or claims history.

Insurers adjust rates based on local factors including crime trends, severe weather patterns, and regional claims activity. Because not every company responds to these factors the same way, your premium may increase at renewal even when a competing insurer in the same area does not raise rates.

If you see a rate increase on your renewal, it’s time to get home insurance quotes and see what other companies can do for you.

Some insurers include coverages as standard that other companies charge extra for. When comparing quotes, check what each policy includes at the quoted price, not just the premium total.

How to shop for homeowners insurance

To shop for home insurance, start by getting a quote from your current insurer, then compare it against quotes from at least two other companies. Having your home's year built, square footage, current deductible, and replacement cost value ready before you start will speed up the process.

Gather your home details: year built, square footage, current deductible, replacement cost value, and any mortgage company requirements.
Request an updated quote from your current insurer.
Get quotes from at least two additional companies, including any insurer where you already hold an auto or life policy.
Compare each quote for both price and included coverages before choosing.

Compare quotes from three to five home insurance companies to get an accurate view of available rates. Fewer than three quotes may not reflect the full range of pricing in your area.

Before finalizing a policy, check the insurer's J.D. Power customer satisfaction score and AM Best financial strength rating. A company with a strong financial rating is more likely to pay claims promptly, especially after a major weather event when many policyholders file at once.

When does it make sense to switch home insurance companies mid-policy?

Switch carriers mid-policy when you have found a better rate or better coverage for a similar rate with another carrier. To ensure you'll save by switching, it's important to find out how much you'll get as a refund if you cancel, and to ensure it makes the new policy's savings worthwhile.

Contact your current insurer and ask for a cancellation quote. Request the exact refund amount you would receive if you cancelled today, and ask whether the policy uses prorated or short-rate cancellation terms.
Compare the refund amount against the cost difference between your remaining premium and the new policy's annual rate. If the savings exceed any cancellation fee, switching is likely worthwhile.
Confirm the new policy's start date before cancelling your current policy. A single day of overlap is acceptable; any gap in coverage is not.
Notify your mortgage servicer if your premium is paid through escrow. The servicer must update the payment recipient before the new policy takes effect.
Request written confirmation of cancellation and the refund timeline from your current insurer before assuming the switch is complete.