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Is it Wise to Switch Homeowners Insurance Companies Right Before My Current Policy Expires?

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It may be time to look for a new homeowner's insurance provider if your current one raises your premiums or if you are unhappy with the level of care you are receiving from the current provider. You can change your policy even if it is not about to run out. Still, depending on the circumstances, it may be advisable to wait until it is time for your yearly renewal before making any adjustments.

Looking Around for Different Policies

It's a smart move to look around every once in a while for a new homeowner's insurance coverage. Other organizations may provide better rates or have implemented more aggressive pricing techniques for homes to attract new customers and grow their customer base. You can shop for a new policy at any moment, not just before the one you now have is about to run out.

The Time That Is Most Convenient For You

Receiving the notice for your annual insurance premium may be the only time you think about your homeowner's insurance policy and the premium rate. It is possible that this reminder could urge you to look into purchasing insurance. In addition, to avoid gaps in coverage, you should time the beginning of coverage under the new policy to coincide with the date when the coverage under the previous insurance would terminate.

Reimbursement of the Premium

If you switch homeowners insurance policies before the end of your current policy's term, you should be eligible to receive a refund that is calculated on a pro-rated basis. In most cases, the refund amount is determined by the number of days still left in the term of the insurance.

Pending Claims

If you have recently suffered a loss and have submitted a compensation claim, you should pause on making any changes until the case has been resolved. Changing insurance providers in the middle of the claim procedure could make things more difficult for you. If you currently have a claim in the process of being processed, you might want to think about renewing your policy so that you can switch policies later and get your money back.

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