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Cancelling your home insurance policy

Cancelling your home insurance policy

It’s easy to get stuck in an insurance rut, renewing with your old insurance provider because you can’t find time to shop around. Switching could mean you get better cover for less. But how and when do you switch? Here we answer any questions you might have. 

Chris King
From the Home team
minute read
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Posted 18 FEBRUARY 2020

Reasons why you might cancel your home insurance policy

There are a few reasons why it might make sense to cancel your current home insurance policy.

These can include:

You’ve changed your mind

If you buy home insurance but soon change your mind, it’s easy to cancel your policy. Under consumer law, you’re allowed a 14-day ‘cooling off’ period. During this time, you can cancel your policy without quibble. The clock starts the day your insurance policy starts or when you receive your policy documents, whichever is the later. 

If your policy has already been running for a few days when the fortnight is up, you’ll get most, but perhaps not all, of your money back. But you may still be charged an admin fee for cancelling your contract within this time. 

You’re moving to a new house

If you’re moving house and no longer need a policy, you’ve got a strong reason to cancel. In this case, you’ll get back a pro-rata amount if you paid annually, which will take into account how long you’ve been covered. Again, there may be an admin fee to pay. 

But if you’re buying another property and still need cover, you don’t have to cancel – you can simply move your policy to your new home. Be warned though, there may be an admin fee and you may face an increase (or decrease) in your premium, depending on the size and location of your new home. It’s worth shopping around if your insurance premium increases as you may well be able to get a cheaper policy by comparing.

Ensure you’re covered up to your moving date. It could also be worthwhile checking to see if your contents will be covered during the moving process or if you have to use a professional moving company for cover to be in place. 

You’ve found a cheaper policy

If you shop around or use a comparison site like ours, you may well find a cheaper deal than the one you’re on. But before you switch, there may be other factors to consider, such as exit or administration fees.  

You may be charged for cancelling your current insurance policy, so it’s important to check before you switch. Often the charge will be higher if you cancel in the first year, as insurance providers will want to recoup the cost of setting the policy up. We’ll give you some information about cancellation costs when you view your quotes and click to find more details about the provider.

You think you’re getting poor service

If you’re unhappy with your current insurance provider, you’re certainly within your rights to switch. But once again you may incur a fee.

Planning to switch insurance providers? Here are our tips: 

  • How to cancel your home insurance – always tell your insurance provider that you’re planning to cancel. Give them a call and they’ll tell you if you need to contact them in writing. They can also tell you what – if any – fees will apply.
  • Fees will vary depending on the insurance provider, but the Financial Conduct Authority is clear that they must be ‘reasonable’. If you think you’re being charged over the odds, call your insurance provider to complain. If they still refuse to waive the fee, you can take your complaint to the Financial Ombudsman. Don’t simply cancel your direct debit – because it doesn’t mean you’ve cancelled your home insurance. Unless you and your insurance provider have mutually agreed to cancel your policy, your contract with them will still be binding. All it will mean is that you’ve stopped paying the premiums, which will leave you with an angry insurance provider on your case. 
  • How to cancel your insurance policy without incurring fees – the most practical way to cancel your policy without incurring fees is simply to wait until it expires. Make a note of your policy’s renewal date and start shopping around shortly before that. Your insurance provider will notify you when your policy is up for renewal, so this is the ideal time to shop around. It’s also worth getting a quote a few weeks before your renewal date. Research shows the cost of your policy is likely to be higher the closer you are to your renewal date. This way you have time to get your new policy in place before the old one expires. When you take out new cover, you’ll be able to stipulate the date you want the new policy to start.

How to compare home insurance prices

Whether you’ve been with your insurance provider a while or are thinking of switching provider, it’s worth comparing prices before you reach a decision. We’ve made that simple by putting together a comprehensive comparison service. Try comparing today to see if you could save.

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