Procedure for Terminating Homeowners Insurance

Terminating homeowners insurance is easy. As a homeowner, you can start and stop a policy at any time, for any reason. Switching policies is as simple as making a phone call. The new insurer will contact your mortgage company to alert them of the change. If a new policy isn’t needed, simply call the insurer to inform them of your wish to terminate the homeowners insurance policy.

Select New Coverage

Visit insurance company websites and call several different homeowners insurance companies to obtain quotes. Have your current policy handy to answer questions about how much coverage you want for dwelling, personal property, liability and other scheduled items. Compare the annual premiums, deductibles and coverage amounts and select the one that best fits your needs. Finalize the application with the insurer you choose so that you will have new coverage set up upon before terminating your current homeowners insurance policy.

Confirm Cancellation

Upon initiating a new policy, the new homeowners insurance company will contact your mortgage company to inform them of the switch. However, it is still your responsibility to confirm your mortgage company has this information. Contact the original insurance company to request policy termination via telephone call. For your records, note the names of the representatives you speak with. The original insurer will send written notification of policy cancellation and effective date.


You are responsible for paying homeowners insurance premiums unless you have an escrow account through your mortgage company, in which case they pay. If switching policies close to the policy end date, your mortgage company may make annual premium payments to both insurers. If this occurs, the first insurance company reimburses you, by check, for the annual premium. You can choose to repay the mortgage company immediately. If not, the mortgage company will discover the lacking escrow funds upon annual review and request repayment, often spread over months.

Cancellation and Non-Renewals

At any time, you can stop coverage of your homeowners insurance policy. Cancellation of the policy occurs any time between the policy’s start and end dates. Insurance companies can cancel your coverage but several states have regulations around when, why and how they can cancel. A non-renewal occurs when the insurer refuses to renew your policy upon expiration. The insurer will notify you of when and why the company is choosing non-renewal. If you choose non-renewal and do not have an escrow account, simply do not pay the premium upon billing.


About the Author

Francine Richards is a licensed multi-state insurance agent with years of human resources and insurance industry experience. Her work has appeared on Blue Cross Blue Shield websites and newsletters, the Houston Chronicle and The Nest. Richards holds a Bachelor of Arts in communications from the University of Maryland.