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How To Switch Home Insurance
How To Switch Home Insurance
Written by
Tina Sendin
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare home and contents insurance the easy way
Save time and effort by comparing a range of home and contents insurance policies with iSelect
Long story short
Timing your switch can save you some dosh
You don’t have to wait for renewal to switch – in fact, you can do it anytime!
Take a look at your current policy before sizing up options
Determine whether things like coverage, excess, and limits still work for you.
Compare multiple quotes using online tools (like ours)
It beats ringing around for hours chasing quotes, or your laptop crashing from having multiple tabs opened.
Ever thought about switching home insurance?
Are you looking at your renewal notice and thinking, ‘Am I actually getting my money’s worth?’ I’m with you. Maybe your premium’s gone up, your insurer’s not responding, or you just feel like there might be something better out there.
If any of those sounds like a resounding ‘yes’, it could be time to check what else is on offer. Whether you’re renting or living in your own place, switching’s usually not as tricky as it seems.
1. Consider the timing
You can switch home insurance pretty much whenever you like. Yes, like anytime! Although there are a few things to consider.
Anytime (like literally)
You don’t have to hang around for renewal if your cover doesn’t suit you anymore. If your situation’s changed or you reckon you might be underinsured, it’s smart to think about switching early.
Check whether you’ll face an early cancellation fee – sometimes it’s worth paying it to get better coverage sooner, but you might want to do the maths first. (I mean, the fee’s usually not much.)
Renewal time
Renewal time is usually when you’ll receive your insurer’s annual offer and see your new premium. If you’re looking at that figure and thinking you could get similar coverage for less elsewhere, then it’s worth exploring your options.
Switching at renewal time is a pretty good move. It means you’re less likely to get hit with early cancellation fees, which some insurers charge if you bail before your policy expires.
Major life changes
If you’re moving house, that could be a cue to review your policy, too (it was for us!). While you can sometimes transfer your current home insurance to your new address, it might also be a good time to shop around for options.
Either way, it makes sense to give your insurer a buzz and ask about any fees or changes in premiums before you make the move.
Here’s the thing – ‘set and forget’ sounds easy, especially when life’s flat out. But if you want to stay on top of coverage and how much you pay for it, it isn’t necessarily a pro move.
If you let your policy just roll over each year without checking, you could end up paying for stuff you don’t even need. And nobody wants that!
‘Let me share what’s worked for us. We regularly take a good look at our current policy and check whether the coverage still fits and offers good value. If it doesn’t stack up, we shop around and start comparing policies against our current one. Sure, switching takes a bit of elbow grease – but it can pay off. When we moved house, we made the switch. Tell you what, we were able to pocket some savings and get better cover!’
Tina Sendin
Digital Writer, iSelect
2. Take a good look at your current policy
Before you start comparing, it’s worth giving your current home insurance a proper once-over. Knowing what you’re already covered for (and what you’re not) helps you make a fair call when sizing up other policies.
Here’s what to check:
Coverage
Work out whether there’s anything you’re missing in your current policy or any optional cover you don’t really need anymore. There’s no point paying extra for things that aren’t relevant to your home or situation, right?
Say you currently have add-on portable contents cover because you thought you’d finally be pursuing your adventure photography pursuits. But as it turns out, you’ve pretty much just stayed in for most of the year, rotting in bed and catching up on your TV shows. It might be worth considering letting this extra cover go.
As you’re comparing, make sure the new policies stack up the same way. An easy trick is to check each insurer’s product disclosure statement (PDS) or key facts sheets, which lay out what’s included (and limits). That way, you can compare apples with apples.
Exclusions
Some insurers exclude flood or accidental damage in their standard policies, while others might have additional exclusions on top of the usual ones. It’s worth reading the PDS with a fine-tooth comb to avoid getting caught out.
Cancellation fees
Some insurers charge early cancellation fees if you look elsewhere and leave early. That’s why planning ahead can save you a whole heap of dramas and maybe a few bucks.
Policy limits
Have a look at how much your insurer actually pays out. You wouldn’t want to end up underinsured!
For instance, how much do different policies set as the standard limit for your stuff? Turns out, it can vary quite a bit. One insurer might cover up to $2,000 per piece or set of jewellery, while another might go up to $2,500.
Excesses
If you bump up your excess (the bit you pay if you need to make a claim), you might get a cheaper premium. But this also means you’ll need to cough up more if something goes wrong. It makes sense to see whether your current excess is still working its magic for your budget.
When comparing different policies, you might also want to compare the amount allotted for other types of excess (on top of the basic one). I’m talking about excesses for things like an unoccupied home.
3. Shop around and understand your options
Now comes the fun part – shopping around for better deals. Start by comparing policies online or using comparison tools that can show you multiple options at once. These platforms can save you time and give you a good overview of what’s available.
And it pays to make sure you get multiple quotes from different providers! You’d likely try on more than one pair of jeans before heading to the checkout – same idea here. Even if the first policy looks like it’ll do the trick, have a wander and see what else is out there. You might stumble across a better deal, one that leaves a bit of extra change in your pocket.
Again, something like the iSelect comparison tool can do the hard yakka for you. All you need to do is fill in a few details about you plus your property, your contents, or both. Then we’ll help you compare details of different policies from a range of providers, side-by-side. When it comes to comparing and exploring options, we’ll take care of the admin stuff for you!
Helpful tip
Read the PDS carefully for any policy you’re seriously considering. Yes, it’s not exactly bedtime reading. Nor is it going to win the Pulitzer for hard-hitting content. But it’s packed with the stuff you need to know about what’s covered, what’s not, and all those exclusions or waiting periods that can trip you up. Think of it as doing your homework now so you don’t end up with a migraine later – especially if you ever have to make a claim.
And don’t just settle for the first quote that lands in your inbox. Picking an insurance policy isn’t grabbing the first snag off the barbie – you want to check what’s on offer, maybe even have a taste. You can think of it as picking out a new doona cover – you’re going to have to live with it for a while, so it’s worth hunting for one that suits you, not just one that’s ‘good enough’.
Adrian Bennett
General Manager for General Insurance
4. Finalise your new policy
Once you’ve found a policy that ticks all your boxes, it’s time to make it official.
The devil is in the detail
Double-check all the details before you sign up – your address, coverage amounts, the people covered under the policy, and any optional extras you’ve selected.
Is your new policy active?
Always make sure your new policy is active before you cancel your old one. You wouldn’t want to be without coverage, even for a day.
Get on to the admin
Set up your payment method and keep a copy of your policy documents somewhere safe and easily accessible. Digital copies are a great backup if the paper ones get ruined. You’ll want to be able to find these quickly if you ever need to make a claim.
5. Break up with your old insurer
Once your new policy is sorted, the next step is to call it quits with your old insurer. Formally cancel your old policy; contact your current insurer to let them know you won’t be renewing (or if you’re switching mid-term, that you want to cancel your policy).
If you’re switching at renewal time, you can usually just decline your insurer’s renewal offer. This way, you’ll avoid any cancellation fees that might apply if you terminate your policy early.
If you’ve paid your premium in advance and you’re cancelling before the policy period ends, you can be entitled to a refund of the unused portion. For example, if you’ve paid annually and you cancel after eight months, you would typically get back roughly four months’ worth of premium – unless you’ve made a claim during the policy period, which might affect your refund eligibility.
Thinking about jumping ship?
Making the switch doesn’t have to be as tough as cracking a macadamia. Start by having a proper squiz at what you’ve already got, then take your time window-shopping for policies that offer better value. Get your ducks in a row, time things right, and you’ll steer clear of any gaps in your cover.
So go on – toss a few contenders in the ring and start exploring options today. Down the track, your future self (and your bank balance) will give you a quiet nod for taking the time to get adequate cover for your home or belongings (or both) and keeping more dosh in your back pocket.
Get started on comparing home and contents today!
Save time and effort by comparing a range of home and contents insurance policies with iSelect
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