How do I Cancel Homeowner's Insurance?

The proper homeowners policy protects your home and possessions.
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If you've recently purchased a home, chances are you have a mortgage. Your mortgage company usually requires you to have a homeowners insurance policy. The policy serves as protection for both you and your lender. While the policy can help protect one of your biggest assets -- your home -- in case of a disaster, it also ensures the mortgage company can get back their investment. You can certainly cancel your policy for valid reasons, such as if you sold your house or switched companies; however, you should be aware of the process and consequences.

Step 1

Call your insurance agent or the company that holds your homeowners policy. Let them know that you intend to cancel your policy and ask about the proper procedure for doing so. It's also a good idea to ask about any paid premium you may be owed.

Step 2

Put it in writing. While some insurance companies might let you verbally communicate your policy cancellation, you should always send a cancellation letter outlining key information such as your name, address, policy number and the effective cancellation date. Request written confirmation that they have received the letter and intend to follow your request. If the insurance company sends you any forms, fill them out and return them on time.

Step 3

Inform your mortgage company of your homeowners insurance cancellation. If you've switched to a new insurance company, let you lender know of all your new policy information. This will avoid any confusion or concern about lapse of coverage.

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