Can I Get Some of the Money Back From Homeowner's Insurance After I Move?

One of the numerous factors to consider while relocating is what to do with your old home's homeowner's insurance policy. Receiving a possible refund from the insurance company is contingent upon several circumstances, including the location of your move and the amount paid on your current policy.

Term of the Policy

Insurance companies frequently provide a variety of payment schedules, including monthly, bimonthly, quarterly, semiannual, and annual. When you relocate, your eligibility for a refund is determined by your payment plan. If you pay your premiums annually, as is frequently the case with escrow accounts, or every six months, you should be eligible for a refund if you are not in the month of your policy renewal. However, if you pay your insurance monthly, it is unlikely that you paid enough to qualify for a return.

Procedures for Cancellation

You should contact your insurance company at least one month before moving to assist with the refund process. The company needs the final date you wish to have your house covered to calculate your return amount. Additionally, include your new address. Policyholders may cancel their homeowner's insurance, but the firm will not reimburse the premium until the last day of coverage has passed. If you're relocating when your policy would normally renew, don't assume your coverage has been terminated due to your relocation. Because policies are structured to renew automatically, you must still contact your insurer to advise them that you will not be renewing your policy.

No Refunds

The insurance provider should prorate your payment to establish how much coverage was used during your active months. For instance, if you pay a lump payment for a year but vacate the premises after four months, the insurance company divides the lump value by 12 to determine the monthly charge. You should receive a refund equal to eight months' rent. However, you may receive less than the whole eight months. The insurance company may retain a tiny portion of the premium to cover administrative costs. The firm will not reimburse you for any broker fees included in your premium.

Transfer Regulations

The insurance company will only refund you if you cancel your coverage and a balance remains. You will not receive a refund if you transfer your insurance to your new residence rather than canceling it. While your new home's premium may be different from the premium for your previous home, the insurer should apply any balance overage to the new premium rather than refund it. If you're moving into a rental property, you'll need to switch from your homeowner's insurance to a less expensive rental policy. You will almost certainly be given the choice to apply your current balance to the renter's insurance or receive a refund.