A simples guide

How to cancel your existing home insurance policy

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.

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Home insurance documents

Why might you want to cancel?

There are a few reasons why you might want to cancel your home insurance, for example:

  • You’ve changed your mind
  • You’re moving house
  • You’ve simply found a better deal

Let’s look at each in turn.

You’ve changed your mind

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 canceling your contract within this time.

You’re moving house

First up, if you’re looking to move house and simply want to change your home insurance policy, you shouldn’t need to cancel it. You should be able to move it to your new property. You’ll need to contact your insurance provider to do this so that you can give them the new details.

This is important as you need to make sure you have continuous cover and also to make sure that your policy accurately reflects the insurance requirements of your new home. While the home contents piece of your policy might not have changed, the building section is likely to need amending.

You may want to use the house move as an opportunity to reassess whether you have the best policy in place, and are getting the right deal. Use our home insurance comparison service to compare your options.

Moving boxes

You’ve found a better deal

Whether you’re moving house or not, we all like to save a few pounds, and often it’s possible to do so by shopping around. With home insurance however, you do need to take a few things into account before you make the decision. If you don’t, you might not save the money you thought you would.

Switching mid policy will usually involve cancelling your existing policy and taking out a new one.

The good news when you cancel a policy is that most insurance providers will give you some sort of pro-rated refund - provided you haven’t made any claims during the policy year that is.

In theory this means that if you cancel after six months, you could get back half of what you paid in premiums. However, beware your insurance provider may charge you an administration fee. It’s also worth noting that you may have to pay for any add-ons you have on your policy.

If you’re not careful, you might end up getting back a lot less than you anticipated, potentially even wiping out the savings that you hoped to make from switching.

Is there another way?

There is another way to cancel your existing home insurance policy, and that’s to simply cancel it before it auto-renewals. If you’re thinking of changing insurance providers, this provides you with an option that avoids the need to pay any fees.

Start comparing home insurance policies as you approach your renewal date. 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 for buildings and contents is really simple. Why not find out what you could save on your home insurance today with our home insurance comparison service?