Here’s everything you need to know about switching your homeowners insurance.
If your home insurance is costing you too much, leaving you underprotected, or your insurer just isn’t showing up when it counts, finding something better is a smart move. The good news? Changing your homeowners insurance is easier than you think, and you can do it at any time. Here’s exactly how.
TL;DR
- You can switch homeowners insurance at any time, no need to wait for renewal.
- Review your current policy, figure out what coverage you actually need, compare quotes, and buy your new policy before canceling the old one.
- Never let coverage lapse. If you have a mortgage, notify your lender once the switch is done.
Step 1. Do your homework
Before anything else, pull out your current policy and read it.
Some policies have complicated language, so go through it carefully – especially the parts about what’s not covered (called exclusions). Note your coverage limits, your deductible, and any cancellation terms. You’ll need all of this when comparing new quotes.
Step 2. Check the calendar
Look for the effective date on your policy’s declarations page, that’s the page that summarizes your coverage, deductible, who’s insured, and more.
About three months before your annual renewal is a good time to start shopping. But you’re not locked in, you can change homeowners insurance anytime; no need to wait for your current policy to expire. Just be aware that some insurers may charge a cancellation fee if you end your policy early.
Step 3. Give yourself a refresher
Before you start getting quotes, take a step back and think about how much coverage you actually need. Things change – maybe you’ve renovated, bought expensive new gear, or your neighborhood’s property values have shifted.
Your home insurance is split into six coverage categories:
- Dwelling coverage: Protects your home’s structure against open perils
- Other structures: Covers things like your fence, driveway, or tool shed
- Personal property: Covers your stuff, from bikes to furniture
- Loss of use: Helps cover hotel bills or extra costs if your home becomes uninhabitable due to a specific named peril like a fire or windstorm
- Liability coverage or Personal Liability insurance: Helps out if there’s bodily injury or property damage to other people (or their stuff) as a result of your own actions-at your home, or anywhere else
- Medical payments: Covers medical bills (usually under $5,000) if a guest gets hurt at your home
Home insurance coverage isn’t one-size-fits-all. The amount of coverage you need will depend on the type of home you live in, and how much your stuff is worth.
One thing worth checking: liability coverage. Some insurers keep it low to lower your premiu, but if your home is worth $500,000 and you only carry $100,000 in liability coverage, you’re likely underinsured. If someone takes you to court, your assets could be at risk.
Also think about add-ons for high-value items (at Lemonade, we call this Extra Coverage), and if you’re in an area prone to wildfires, floods, or earthquakes, look into whether you need separate coverage for those.
And now’s a good time to remember that homeowners insurance won’t kick in for every single mishap or disaster; there are a bunch of things your home insurance policy won’t cover.
Step 4. Play the field
Now that you know what you need, it’s time to compare.
As you compare homeowners insurance rates from different insurers, make sure you get quotes with matching coverages, limits, and deductibles. This is the only way to do a real apples-to-apples comparison.
With Lemonade, you can get a quote in minutes without leaving your couch – just share some info about your home’s structure, roof, and materials. But definitely get a few quotes from different insurers before deciding.
Is switching actually worth it?
Right now, a lot of homeowners are in the same boat you might be. According to the JD Power in 2025, almost half (47%) of homeowners insurance customers in the United States experienced a premium increase in the past year – the highest rate of insurer-initiated rate raises in more than a decade. So if your rate has gone up, you’re far from alone, and shopping around is the right call.
That said, most insurance professionals recommend carefully comparing quotes before you switch carriers. Another carrier’s lower quote may be due to lower coverage limits or reduced coverage types. A lower premium only makes sense if the coverage still meets your needs.
One thing to check: bundling. For instance, bundling a Lemonade homeowners policy and a Lemonade Car policy could unlock a discount. It’s worth factoring that in.
Step 5. Do a background check
Numbers aren’t the whole story. How does the insurer actually treat customers?
Check out reviews on Trustpilot, Consumer Affairs, or Clearsurance. Look for patterns in how they handle claims, communicate, and respond to problems. You’ll also want to confirm they’re financially stable — a company that can’t pay out claims isn’t much of an insurer.
Price isn’t the only thing that matters. Remember to consider other important factors like the insurance carrier’s reputation and customer service availability. All of these can be great factors to add additional layers to your initial assessment.
Step 6. Cut ties with your ex
Found a policy you like? Time to make the switch.
Important rule: always buy your new policy before canceling your old one. You never want a gap in coverage.
If you’re switching to Lemonade, we make this easy. During the quote process, you’ll let us know you’re switching from another carrier. Once you’re signed up, Lemonade will cancel your existing policy at midnight on the day your new Lemonade policy kicks in.
If your previous policy doesn’t get canceled as it should, just send your old carrier the declarations page of your new Lemonade policy plus our cancellation request – they’ll be obligated to backdate the cancellation to your new policy’s start date.
Common reasons homeowners switch insurance (and what to do)
The seven steps above cover the how. But knowing the when and why can make the decision a lot clearer. Here are five real situations where switching makes sense — and what to actually do in each one.
Scenario 1: Your premium jumped at renewal with no clear reason
This is the most common reason homeowners start shopping. Insurers regularly adjust rates based on regional claims data, reinsurance costs, and local weather risk — and those increases often have nothing to do with your own claims history.
If your renewal notice shows a significant jump, request a written explanation from your insurer. Then get at least three competing quotes with identical coverage limits and deductibles. A 15–20% rate increase is often recoverable by switching carriers, but confirm the new quote isn’t achieving savings through reduced coverage. A lower premium with gaps in protection isn’t a real deal.
Scenario 2: You recently renovated your home
A kitchen remodel, finished basement, or new addition can significantly increase your home’s replacement cost — which means your current dwelling coverage limit may no longer be enough. If your home is underinsured and you experience a total loss, you could face a serious out-of-pocket gap.
Before renewing, get an updated replacement cost estimate. Then compare whether your current insurer will adjust your coverage appropriately, or whether a new policy better fits your home’s updated value.
Scenario 3: You moved to a higher-risk area
If your neighborhood has seen increased wildfire, flood, or hurricane risk — or your insurer has pulled back from your region — you may find your policy non-renewed or your premiums becoming unmanageable. In some cases, switching isn’t optional.
Research state-backed programs (like FAIR plans) and specialty insurers that cover high-risk properties. Also evaluate whether you need separate flood or earthquake coverage, since a standard homeowners policy typically won’t provide it.
Scenario 4: Your insurer handled a claim poorly
A slow payout, disputed settlement, or unresponsive claims team is a legitimate reason to leave — even mid-policy. Before renewing with the same carrier, check their claims satisfaction scores on J.D. Power, AM Best, or Clearsurance. If patterns of poor handling show up across reviews, a carrier with a stronger claims reputation may be worth a slightly higher premium.
Scenario 5: You’re buying a new home
If you’re purchasing a new property, you’re required to have homeowners insurance in place before closing. This is actually an ideal moment to shop the market rather than defaulting to your current insurer. Your new home may have different structural characteristics, risk factors, or coverage needs than your previous one — which makes a fresh comparison across multiple carriers worth your time.
What if you’re switching to someone other than Lemonade?
No hard feelings. You’ll need your new policy’s declarations page and proof of payment. Contact your old insurer and request cancellation effective on the start date of your new policy. If they raise concerns about a coverage lapse, just let them know you already have a new policy in place as of that date.
Also worth knowing: you may receive a refund check from your prior homeowners insurance company if you cancel your policy before it expires, reimbursing you for the coverage you already paid for. If your premiums are paid through an escrow account, you’ll need to forward that refund check to your mortgage lender so they can deposit the funds back into your escrow account.
And if you were bundling with your current insurer, check whether dropping your homeowners policy means losing discounts on your other coverage.
Cheers to better homeowners insurance for your family!
Step 7. Spread the word
The last step: tell your mortgage lender.
Once you’ve confirmed your cancellation, get in touch with your lender right away. You’ll need to send them:
- Your new policy’s declarations page
- Your old policy’s cancellation confirmation
- Your mortgage loan number (if they need it)
- Your old and new policy numbers
Your lender needs to know about your insurance change so they can direct homeowners insurance payments from your escrow account to the correct insurer. Pay attention to the mortgagee clause on your new policy, as it lists important information about your mortgage company. Your mortgage lender likely has a special mailing address for insurance documents, so make sure your new insurance company has it on file.
If you switched to Lemonade, we’ll help handle a good chunk of this legwork for you.
Before we go…
Switching homeowners insurance isn’t as complicated as it sounds. Before you do anything else, read your current policy -coverage limits, deductibles, exclusions, all of it. Then take a few minutes to think about what you actually need, because your situation may have changed since you first signed up.
When you’re ready to shop, make sure you’re comparing quotes with the same coverage limits and deductibles, otherwise you’re not really comparing the same thing. Once you’ve found a better policy, buy it before canceling your old one – you never want a gap in coverage. And if you have a mortgage, don’t forget to loop in your lender. They need to know about the switch. If you’re ready to see what Lemonade can do for you, a quote takes as little as 90 seconds.
