Cancelling your home insurance policy

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You can cancel your home insurance policy at any time but there may be financial implications when you do so. Here, we’ll look at what happens when you cancel your policy and when might be the best time to do it.

Frequently Thought Questions

It’s easy to get stuck in a home insurance rut. You end up renewing with the same provider because you’ve either left it too late to go somewhere else or you just don’t find the time to shop around. You may also be apprehensive about switching. After all, the policy you’ve had for a few years hasn’t let you down so far, but who’s to say you couldn’t get the same, if not more comprehensive cover, for less money by switching. But when and how do you switch? Here, we’ll help answer some of the questions you may have with regard to cancelling your home insurance policy.

Why might you want to cancel your home insurance policy?

There’s a few reasons why it might make sense for you to cancel your policy:

You’ve changed your mind about a policy

If you purchase home insurance but then change your mind (soon afterwards), it should be simple to cancel your policy.

Under consumer law, you’re allowed a 14 day “cooling off” period. During this period, you can cancel your policy without any issue. The clock starts the same day your insurance policy starts, or when you receive your policy documents, whichever is the later of the two.

If your policy has been running for a few days up to the full two weeks, you might not get back everything you paid – but it should be pretty close. Be aware however that you still may be charged an administration charge for cancelling your contract within this time.

You’re moving house

If you’re moving house and no longer need a policy, that would be a good reason to cancel. In these circumstances, you’ll get back a pro-rata amount after taking into account how long you’ve been covered. There may also be an admin fee to pay.

However, if you’re buying a new property and still need cover, you won’t need to cancel – you can move your policy with you to your new home. Bear in mind that an admin fee may be charged and you may face an increase (or decrease!) in your premium, depending on the cover you need in your new property, and its address.

Also, it’s a good idea to liaise with your insurance provider to make sure you’re covered throughout the move and double check whether your insurance provider requires you to move with a professional removals company for you to be covered.

You’ve found a cheaper policy

It may be that you’ve been shopping around or used a comparison service and found that you can get a cheaper policy. Before you just switch however, there’s a few things to consider such as fees. More on that later. 

Poor service 

You may have been dissatisfied with the performance of your insurance provider through an experience of dealing with them. As with finding a cheaper policy, you’re certainly able to switch, but remember, there are other factors to take into account.

How do I cancel my home insurance?

Always ensure you tell your insurance provider. It’s usually worth speaking to them over the phone in the first instance, and they will let you know if you need to notify them in writing. When you speak to your provider you can also find out what cancellation fees may apply.

Can’t I just cancel my direct debit?

If you have a direct debit, simply cancelling it doesn’t mean that you’ve cancelled your home insurance – unless you and your provider have mutually agreed to cancel your policy, your contract with them will technically still be binding as you have signed up to an annual contract. All it means is that you’ve stopped paying the premiums – which in turn, means you’ll end up with an angry insurance provider on your case who is likely to chase you for the money you owe.

Are there fees involved with cancelling a policy?

Yes, there may well be fees involved with cancelling your policy (although not all insurance providers will charge them). Insurance providers usually charge an admin fee so it’s important to check this in your policy before you cancel your policy. If you’re switching provider to save money, it’s important to make sure you don’t wipe out the savings you were making after taking into account the fee. 

So how much will I actually get back?

The amount that you’ll get back depends how long your policy has been in place along with the terms and conditions of your existing insurance provider. You might assume that if your policy has been in place for six months you’ll get back half of your premium. This is indeed likely to be the starting point. However, your insurance provider may charge you for any extras that you’ve had on the policy, plus an administration fee. This means you might get back less than expected. Our advice is always to check first. 

Is there a way to cancel without fees?

The best way to cancel your policy without fees may be to simply wait for it to expire and then don’t renew it it. Make a note of the expiry date and start comparing home insurance policies as you approach it. In this way, you can ensure that you give yourself a little time to make sure that your new policy is in place as the old one expires. You’ll be able to stipulate what date you want the new policy to start when you take out the new cover.

Comparing home insurance prices

Whether you’ve been with your provider for a while or you’re thinking of switching provider, it’s a good idea to compare prices before you make the decision. We’ve made that really simple to do by putting together a comprehensive insurance comparison service. Try it today to find out what you could save. 

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