Thinking about changing homeowners insurance companies but worried your mortgage will complicate things? Good news: switching is completely allowed, fairly simple, and often saves real money. Your lender doesn’t care which insurance company you use — they just require that the home stays insured and that they’re kept in the loop when your coverage changes.
Here’s exactly how to handle the switch, based on your situation.
Can I switch homeowners insurance if I have a mortgage?
Yes. Your mortgage agreement requires you to carry homeowners insurance, but it doesn’t lock you into any particular carrier. You can switch at your renewal date or in the middle of your policy term. The only real requirement is notifying your mortgage company so their records — and any escrow payments — follow your new policy instead of the old one.
Before you make any calls, have your new declarations page handy. That’s the summary page from your new policy showing the carrier, coverage amounts, effective dates, and premium. The mortgage company’s representative will likely ask for details from it.
Step one for everyone: call your mortgage company
No matter which situation below applies to you, the first move is the same. Call your mortgage servicer and follow the phone prompts to the Escrow Department or Hazard Insurance line. Tell them you’re changing homeowners insurance providers. Then follow the steps for your specific scenario.
Switching at renewal when escrow pays your insurance
This is the cleanest scenario. Your old policy simply ends at renewal and the new one begins.
- Tell the escrow department you’ve changed carriers and that escrow should pay the invoice from your new insurance company going forward.
- Provide the new policy details from your declarations page.
- If asked, upload proof of insurance to the website they give you — or let them know your agent has already sent it.
Your lender updates their records and pays the new carrier automatically at renewal. No extra payment needed from you.
Switching at renewal when you pay insurance directly
Even simpler. Since no escrow money is involved, the lender just needs updated records showing the home is insured.
- Give the escrow/hazard insurance department your new carrier and policy information.
- Provide proof of insurance if requested.
Your payment arrangements stay exactly as they were — you’ll just be paying a new company.
Switching mid-term when escrow pays your insurance
You can absolutely switch before your renewal date, and this is where one important detail comes in: the refund from your old carrier.
When you cancel a policy mid-term, the old insurance company refunds the unused premium. But if that premium was originally paid out of your escrow account, that refund needs to go back into escrow — not into your pocket.
- Tell the escrow department you’ve switched carriers and that escrow should pay your new company’s invoice.
- Ask them the best way to route the refund from your old carrier back into your escrow account.
- When the refund check arrives, follow their instructions and deposit it into escrow.
Why does the refund go back to escrow? Because your lender already paid your full annual premium from that account. If the refund doesn’t come back, your escrow account comes up short at your next annual escrow analysis — which can mean a higher monthly mortgage payment to make up the shortfall. Sending the refund back keeps everything balanced.
Switching mid-term when you pay insurance directly
If you pay your own premiums, a mid-term switch is straightforward:
- Notify the escrow/hazard insurance department of your new carrier so they can update their records.
- Provide proof of insurance if requested.
Any refund from your old carrier comes straight to you — no escrow routing needed — and you simply start the payment schedule with your new company.
Frequently Asked Questions
Will switching homeowners insurance affect my mortgage?
No. As long as there’s no gap in coverage and your lender has your new policy information, your mortgage is unaffected. Your monthly payment may even go down at your next escrow analysis if your new premium is lower.
Do I need to cancel my old policy myself?
When you switch through an independent agency like MBG Insurance, we coordinate the timing so your new policy starts the day your old one ends — no gap, no overlap. Never cancel your old policy until the new one is confirmed in force.
What happens if I forget to notify my mortgage company?
The lender may keep paying your old carrier, or — worse — see no active policy on file and purchase expensive “force-placed” insurance on your behalf. A five-minute phone call avoids both problems.
Shopping your home insurance? We do the heavy lifting.
As an independent agency, MBG Insurance shops your home coverage across 20+ carriers to find the right protection at the right price for Missouri and Arkansas homeowners — and we help coordinate the switch with your mortgage company so nothing falls through the cracks. Click for our Springfield, MO , Oak Grove, MO, or Bentonville, AR office.
Kirk Reisner | kirk@insurancenerd.net | 417-218-0762
2100 S Brentwood Blvd., Ste. B, Springfield, MO 65804
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