Can You Cancel Your Home Insurance Policy with an Open Claim?

In some cases, you may not want to remain with your current home insurance provider after a claim. You may even be tempted to cancel your policy while a claim is still open. While it is possible to do so, there are certain things you should keep in mind.

Switching Insurance During or After a Claim Can Raise Your Rates

If the goal in switching your home insurance policy is to save money, this may not be the best decision to make after or during an open claim. The more claims you have on your record, the more you may pay for home insurance. If you remain with your insurer, they may work with you to save money on your rates. However, there is no harm in comparing quotes and keeping an eye on home insurance prices.

Switching Will Not Affect the Open Claim

Say you have an open claim and decide to switch insurance providers while the claim is still open. Your new insurance provider will not be handling your open claim. Instead, the insurance provider with which you opened the claim will finish handling it. Afterwards, all claims can go through your new insurer. So if you are unhappy with the compensation you have been offered through your current insurance provider, switching providers will not have any effect on your compensation.

You Can Change Insurance Providers at Any Time

There are no set dates or time during which you must switch your home insurance provider. You can do it at any time, even if you have an open claim. It also helps to compare quotes between insurers, especially at the beginning of the new year. Premiums are liable to change year to year as well as during the year due to different circumstances, such as if you move or make upgrades to the home.

Not All Insurers Offer the Same Coverage

Not all insurance providers offer equal coverage. You may switch insurers only to discover that your new insurance provider does not offer the additional coverage your used to, or you may switch to find that you can receive higher coverage limits than with your previous insurer. It is crucial to do your research and ask explicitly about the coverage options available to you. Many homeowners end up paying too much for home insurance that doesn’t cover all of their needs.