How to Cancel a Homeowners Insurance Policy in Tennessee

Summary: In Tennessee, homeowners insurance is usually paid for a full year in advance. If you’re selling your house or changing insurance providers, it’s crucial to cancel your policy the right way. Our guide is here to help you cancel your policy smoothly, so you can steer clear of coverage gaps, avoid any surprise fees, and get any refunds you’re owed. Estimated Read Time: 3 mins

Table of Contents

1. Cancelling a Home Insurance Policy in Tennessee
2. Can I Cancel Homeowners Insurance in Tennessee at Any Time?
3. In Tennessee, Are There Home Insurance Cancellation Fees or Any Refunds?

In Tennessee, homeowners insurance is usually paid for the year up front. If you sell your home or decide to switch insurance companies before your policy ends, you can cancel your coverage and get a refund for any unused premium. Canceling your homeowners insurance is a pretty straightforward process. You just need to follow a few simple steps to make sure there’s no gap in your coverage. As long as you have your new policy lined up before canceling the old one, you’ll be in great shape. Here’s everything you need to know to cancel your homeowners insurance in Tennessee the right way.

Cancelling a Home Insurance Policy in Tennessee

Having coverage is a requirement if you have a mortgage, and Tennessee homeowners insurance is no exception. It helps protect both your home and your lender’s investment by covering things like fire, storm damage, vandalism, and more.

Because Tennessee law lets each insurance company set its own rates based on different factors, prices and coverage can vary a lot.

If you find a better fit with another insurer, switching is easier than you might think.

You’ll just want to make sure you handle the cancellation carefully to avoid any coverage gaps.

Shop Multiple Carriers and Confirm Your New Policy

Before you cancel your current policy, take the time to compare different home insurance providers.

Ensure your new policy offers the coverage you need at a better price. If your current insurer has raised rates or isn’t meeting your needs, it’s a great opportunity to switch.

With the help of an insurance broker, like Freedom Insurance Group, you can easily compare quotes from top companies.

Once you find the right fit, confirm the details of your new policy and make sure it’s set to start before proceeding with cancellation.

Get the Cancellation Process Started

Once you’ve secured a new policy, it’s time to notify your current insurance provider that you want to cancel.

Contact your agent directly and inform them of your decision to cancel your home insurance.

Most companies will require written notice, which they’ll often provide through a simple cancellation form. Fill out the form and return it to your provider to keep things moving smoothly.

Match Your Cancellation Date with Your New Coverage

When canceling your policy, make sure to time it right. You want your old policy to end the same day your new one begins to avoid any coverage gaps.

Check the activation date on your new policy carefully, and plan to cancel your current coverage accordingly.

You should also ask for a prorated refund of any unused premiums so that you’re not overpaying for coverage you no longer need.

Submit and Follow Up on Your Cancellation Request

After sending your cancellation notice, it’s important to confirm that it’s been received. Fax or email the form to your insurance provider, and be sure to follow up with a phone call to verify that your cancellation is in process.

Keeping a copy of your cancellation letter for your personal records will help protect you if there are any issues later on.

Notify Your Mortgage Lender About the Change

Finally, make sure to notify your mortgage lender about the change in your home insurance provider.

Even though insurers may inform your lender automatically, not all of them do. It’s a good idea to reach out directly and confirm they’re aware of the switch.

That way, everybody is on the same page, there’s less confusion, and you can avoid delays should an issue arise.

Can I Cancel Homeowners Insurance in Tennessee at Any Time?

Yes, you can cancel your Tennessee homeowners insurance at any time, even if your policy hasn’t fully expired. When you cancel, you’re usually owed a refund for any unused premium.

For example, if you pay for a full year but sell your home halfway through, you should get reimbursed for the unused months. Just make sure your timing lines up so you aren’t left without coverage.

Whether you’re switching to a better policy or no longer need coverage because you sold your home, knowing your rights helps you protect your home—and your wallet.

In Tennessee, Are There Home Insurance Cancellation Fees or Any Refunds?

When you cancel your home insurance in Tennessee, the insurer cannot charge you for coverage after your cancellation date, but they may impose a fee if you cancel before the policy period ends.

Most Tennessee home insurance companies don’t charge a cancellation fee, though. If there is one, it typically gets smaller as you approach the end of your policy term.

To avoid this fee altogether, consider canceling on the last day of your current policy. Additionally, any unused premiums will be refunded, with the cancellation fee deducted from that amount.