Cancel a home insurance policy- when you took out a mortgage to purchase your home, you were probably required to get and maintain a homeowner’s insurance policy as a condition of your mortgage—since your lender has a security interest in your home. This does not mean that you cannot shop around for the best insurance rates from alternative lenders and cancel one policy in favor of another. Additional reasons why you may need or choose to cancel your current homeowner’s insurance include moving, a change in the value of the property or the desired level of coverage. Canceling a homeowner’s insurance policy is not difficult, but there are certain procedures that you should follow.
Call your mortgage lender and inform them that you are considering a policy change. Ask your lender if there are any specific policies or procedures that apply for reporting a cancellation or purchasing insurance from a new provider. Most lenders will require that you maintain a minimum amount of coverage to cover the value of your mortgage.