How to Cancel a Homeowners Insurance Policy in Texas

Summary: In Texas, homeowners insurance is typically paid for the year up front. When selling your home or switching insurers, it’s important to cancel your current policy properly. Learn how to cancel your policy, avoid gaps in coverage, and understand any fees or refunds so you’re fully protected. Estimated Read Time: 3 mins

Table of Contents

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

Texas homeowners insurance is often paid for the year up front. So if you sell your house or switch companies before your current policy expires, you’ll need to cancel it to get reimbursed for any unused premiums. Canceling homeowners insurance can be as simple as contacting your insurance provider and filling out a brief cancellation form. But before making it official, make sure you have another policy lined up so you aren’t leaving yourself without coverage for any period of time. Here’s what you need to know to properly cancel your home insurance policy without facing coverage gaps.

Cancelling a Home Insurance Policy in Texas

In Texas, mortgage lenders require that homeowners maintain insurance on the property to protect the mortgage lender’s investment.

Homeowners insurance in Texas pays to repair damage to the home from fire, vandalism, water damage, weather, and various other causes.

Texas law allows each insurer to set its own insurance rates, so rates vary based on each company’s unique rating factors and target market.
When you find an insurer that meets your needs better than your current insurance company and want to switch, canceling your current home policy is simple:

Compare Multiple Carriers and Confirm Your New Policy

Compare rates from multiple insurance companies and confirm your new home insurance policy.

If you’re not happy with your policy or you’re facing a big rate hike on your renewal, re-quoting your homeowners insurance with Freedom Insurance can be a good way to find better and cheaper coverage. Our agents can help you compare quotes from multiple top companies.

Begin Your Cancellation

Once you officially decide to change your homeowners insurance, you’ll want to confirm a few things before contacting your current insurance provider to cancel.

Contact your insurance agent and tell him you want to cancel your homeowners policy. They will require notice of your desire to cancel in writing.

Most insurance companies will email you a simple cancellation form to fill out and send back.

Be Aware of Your Cancellation Date

You’ll want to cancel your old home insurance policy on the same date that the new home insurance coverage becomes active. You should also request a prorated refund of any principal paid.

Send and Confirm Your Cancellation Notice Submission

Fax or email the letter to your agent. Call after sending the letter to confirm receipt and cancellation. Mail the letter to your agent and keep a copy in your personal business records.

Don’t Forget to Tell Your Lender

Mortgage lenders are usually listed as a loss payee on homeowners insurance policies since they have a financial stake in the home.

This means if you switch companies, your insurer may notify your lender on your behalf. But to be on the safe side, it’s a good idea to reach out to your lender yourself.

Can I Cancel Homeowners Insurance in Texas at Any Time?

Yes, homeowners insurance in Texas can be canceled at any time, and you also have the right to a policy refund of any unused premium when you cancel.

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

In Texas, your insurance company cannot charge you for coverage beyond your cancellation date, but it can charge a fee for canceling before the current policy period ends. Most home insurance carriers do not charge a cancellation fee.

With some companies, the cancellation fee gets smaller as you get closer to the end of your policy period. You can avoid this fee altogether by scheduling your cancellation for the final day of your current policy period, which technically counts as non-renewing your policy.

The insurance company also has to refund any amounts you’ve prepaid for coverage beyond the cancellation date. Your cancellation fee is usually deducted from your refund.