How to Cancel a Home Insurance Policy in Missouri

In Missouri, mortgage lenders typically require homeowners to maintain insurance on their property to safeguard the lender’s investment. This insurance helps cover repair costs from events like fire, vandalism, water damage, and various weather-related incidents. Missouri law allows insurers to set their own rates, which can vary significantly due to different rating factors and target markets. Here’s how to cancel your current home insurance policy in Missouri if you decide to switch providers:

1. Compare Rates and Confirm New Policy:

   • Start by comparing rates from multiple insurance companies to find a better fit for your needs, especially if you’re facing increased premiums or are unsatisfied with your current coverage. Agents at Freedom Insurance can assist in comparing quotes from top companies in Missouri.

2. Initiate Cancellation:

   • Once you’ve secured a new policy, notify your current insurance agent of your intent to cancel. Missouri insurers usually require this notice in writing. You might receive a cancellation form via email which you need to fill out and return.

3. Timing Your Cancellation:

   • Ensure your old policy’s cancellation coincides with the start date of your new policy to avoid any coverage gaps. Request a prorated refund for any unused portion of your premium.

4. Submit Cancellation Notice:

   • Send your cancellation request by fax or email, followed by a phone call to confirm receipt. Also, mail a copy of the letter for record-keeping purposes.

5. Notify Your Mortgage Lender:

   • Since your mortgage lender is often listed as a loss payee on your policy, your insurer might inform them of the cancellation. However, it’s wise to contact your lender directly to ensure they are aware of your new insurance arrangements.

Missouri homeowners insurance is generally paid annually in advance. If you decide to switch companies or sell your home before your policy term ends, you’ll need to cancel your current policy to secure a refund for unused premiums. However, always ensure you have new coverage in place to prevent any period without insurance, which could leave you financially responsible for any damage.

Can I Cancel Homeowners Insurance in Missouri at Any Time?

Yes, you can cancel your homeowners insurance in Missouri at any time, and you are entitled to a refund for any unused portion of your premium.

Are There Home Insurance Cancellation Fees or Refunds in Missouri?

In Missouri, insurance companies can’t charge for coverage after the cancellation date, but they might impose a fee for early cancellation. Not all insurers charge this fee, and it often decreases as you approach the end of your policy term. Canceling on the last day of your policy period might be seen as non-renewal, potentially avoiding any fee. Any prepaid premiums for the period beyond your cancellation date will be refunded, with any applicable cancellation fee deducted from this amount.