Replacing Earthquake Insurance in Texas
How Do I Switch my Earthquake Insurance to Another?
Switching from an earthquake coverage to another is possible before the expiry date of your insurance policy. A Texas-licensed insurance agent can guide you through the process to make the earthquake insurance replacement easy.
How Can I Replace my Earthquake Insurance if I Find a Better Deal?
All Texas earthquake insurers offer slightly different insurance rates, based on their chosen policy structures. Once you find a better deal with another insurer, you should review the new earthquake policy with a knowledgeable Texas-licensed insurance agent, to ensure that the terms of coverage are indeed comparable. In some cases, the advertised prices may be misleading, and it takes a professional with a trained eye to identify the issues hidden in small print.
Better deal in earthquake insurance usually means:
More coverage for the same price or
Same amount of coverage for a lower price.
Once a better earthquake insurance is identified, apply for the new coverage with the help of the agent and wait until the application is approved. With new and better coverage approved, contact your former insurance company to cancel the old earthquake insurance. The amount of refund for your unused earthquake premium will depend on the cancellation terms of the policy.
Can I Switch my Earthquake Insurance to Another Company?
Yes, it is possible to swap your earthquake insurance to another insurance company if the new insurer offers earthquake coverage meeting your needs to Texas residents. Once you decide to make the switch to another company:
Keep the existing previous coverage active until the new one takes effect. Avoid gaps in coverage.
Shop for alternative coverage, preferably using a knowledgeable property insurance agent licensed in Texas. The agent assesses your needs and identifies the best ways you may benefit from various coverage solutions they are bringing to the table. The agent can also explain the rationale behind your best choices, and how the coverage would play out depending on your decisions between the choices.
If you like the level of service you were getting from the previous insurer, reach out to their agent and ask if they can match your new offer. It’s only fair to allow them to try to win your service back. Since the insurance rates are set and cannot be adjusted for individual customers, the price you pay for earthquake insurance may be adjusted by changing the packaging and the structure of the policy. A restructured policy with newly balanced deductibles may allow you to solve your needs, lower the costs, and remain with the insurer you like.
If the previous insurer fails to remain competitive with the new quote:
Submit the application to the new insurance company and wait until it is approved.
Request the new earthquake coverage to start the day after you plan to cancel the old policy. For example, if the new policy is set to begin coverage on May 4th, the old policy can be canceled with the last day of coverage of May 3rd.
With a new policy scheduled to start coverage, inform the original insurer of your decision to cancel and provide the last date when the coverage is still needed (usually the day before new coverage takes effect, so there is no gap in coverage).
Make sure that you understand what will happen with the unused premium from the old policy. If the policy was not terminated on its anniversary, the overage difference between the premium paid-in and the premium-used is usually paid out to the insured, minus any termination fees outlined in the policy contract.
Commercial Property Insurance Note: In case of a business buyout, businesses generally cannot transfer earthquake insurance coverage to other businesses. The new owner will need to search for and acquire new earthquake insurance coverage.
What Happens if you Change Earthquake Insurance Companies?
Plan the switch between insurers to avoid the gap in coverage. When you change your earthquake insurance company, your deal with the previous company will terminate, and that company's earthquake insurance will no longer cover you. You might also have to wait 30 days for your new insurance to take effect, and you will not be protected if an earthquake strikes during those 30 days. This is why it's best to switch Earthquake insurance companies while your existing policy is still valid, so you don't go without protection.
Can I Change Earthquake Insurance Companies at Any Time?
Yes, you may switch earthquake insurance providers if you have new earthquake insurance coverage. Nevertheless, double-check the contract terms with your Texas insurance agent to compare coverage limits and deductibles before you do so. Additionally, before switching Earthquake insurance providers, obtain advice from your insurer’s representative.
