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Can You Cancel Your Home Insurance?

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Are you considering cancelling your homeowner’s insurance? But you’re not sure whether you can cancel your home insurance, keep reading this blog to find out.

Home insurance

Source: Freepik

Even before you begin to decorate your newly purchased home, there’s one thing you need to do. Get home insurance! After all, we all need to protect our precious assets. And your home is a costly asset!   

As necessary a home insurance is, sometimes life happens! You might have to cancel your home insurance because of some unforeseen events and conditions. Do you know how to do so? Do you want to know how canceling your home insurance can affect you in the long run?   

In this blog, we will help you know why and how to cancel your home insurance and what happens after the cancellation. 

Why do you need home insurance? 

Home insurance ensures your house, and all belongings are safe. This is certainly great for your peace of mind in the long run. Life is unpredictable; sometimes a small accident can lead to huge consequences. Then there are situations beyond your control. Fire hazards or natural disasters!  

There are many aspects which home insurance can cover, such as: 

  • Damage to your home and belongings 
  • Theft of your household items and personal possessions 
  • Harm to people visiting your property. 
  • Damage to other people’s home caused by you. 

Home insurances cover some unexpected accidental events, but not all of them. These unexpected events may include earthquakes, landslides, floods, etc. Thus, you need to assess your property and find out which policy best suits your needs. 

Cancel home insurance
Source: Freepik

What are the reasons to cancel your home insurance? 

Yes, you can cancel your home insurance when you want.  

Some reasons include: 

Your mortgage is paid off:  

When you are mortgaging your home, adding home insurance is imperative. You can cancel your home insurance when you squared up the mortgage. 

You are moving to a new house:  

If you are planning to shift into a new home, you would want to cancel your current home insurance. It is prudent to do so because when moving into a new house, your provider might not offer much coverage. Many factors can cause insurance coverage to change.  

You have decided to rent a home:  

If you have sold off your home and now live in a house on rent, you can cancel the current home insurance. 

When can you cancel your home insurance? 

If you are not happy with your current policy, you can choose to terminate it. But you may have to pay some penalty towards the cancellation of your contract.  

You can cancel an insurance policy within a set time stipulated in the policy. This period is usually 10 days. The duration for canceling the policy may vary depending on your insurer. But during this phase, if you cancel your insurance, you can get a refund of premiums you might have paid.  

Another good time to cancel your insurance is when your contract is due for renewal. Your new premium and the term of the insurance may vary from the last one. You may choose to discontinue the home insurance and you will not have to pay any penalties. 

How can you cancel your home insurance? 

You are aware of the reasons and times when you can cancel your home insurance. We suggest you prepare a checklist of things to not lose track of the process. Here are the steps involved in canceling the policy:

Checklist
Source: Freepik
  • Check your policy to see if any penalty is levied upon terminating the insurance before time.  
  • Get in contact with your insurance provider. Find out about different fees and conditions for the cancellation of your policy.  
  • Don’t forget to ask your insurance company to get written confirmation about the cancellation of insurance.  
  • Start looking for a new insurer. Compare quotes sent by different agents and companies and make an informed decision. 

You can cancel the home insurance policy whenever you want. Decide on the factors that will help you reduce certain penalties. Consult your insurance agent and openly communicate to make the process a lot smoother.  

The bottom line is that it is always better to buy a policy that protects your interests in your home and its belongings.

References: 
https://www.canada.ca/en/financial-consumer-agency/services/insurance/cancel.html
https://lautorite.qc.ca/en/general-public/insurance/home-insurance/cancelling-home-insurance
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