up button arrow
https://texasinsurance.org is a privately owned website that is not owned or operated by any government agency

Canceling Texas Homeowners Insurance

In Texas, you can cancel your homeowners insurance anytime you desire, but you may or may not get a refund of your full unused premiums, depending on your policy agreement. You also may incur a levy for canceling your policy early. Some insurance companies impose penalties or charge cancellation fees when you cancel your policy before it expires. The fees differ per insurance company, so do consult with an independent licensed agent for help. A Texas-licensed property insurance agent will review your homeowners insurance needs, highlight the pros and cons of new policy options, and propose an alternative coverage policy that will replace your current coverage. The goal is to ensure there is no gap in your homeowners insurance coverage.

How Do I Cancel Homeowners Insurance Policy?

To cancel your homeowners insurance policy, you must inform the insurance provider that you want to cancel your coverage. To initiate the cancellation process, do the following:

  • Assess your homeowners insurance policy and insurer. You may need to cancel your policy if you are no longer satisfied with your current insurer or your coverage has become insufficient for your current insurance needs

  • Inform your insurance provider of your decision to cancel

  • Complete the paperwork provided by the insurance company

  • Collect the refund of your unused premiums, if applicable. Note that your insurer may also charge a cancellation fee

Contact a knowledgeable Texas-licensed property insurance agent to help you with canceling your homeowners insurance policy.

Is it Bad to Cancel Homeowners Insurance Policy?

Canceling your homeowners insurance policy has its pros and cons. It may be a good decision if you no longer need the coverage, especially if you have already sold your home. Canceling your policy may have adverse consequences if you cancel it before getting a new policy to replace it because this may cause a coverage gap that will leave your home unprotected against insurable risks. You may also have to pay a cancellation fee since most insurance companies in Texas charge cancellation fees.

Do not cancel your homeowners insurance policy if you have a mortgage. Your lender will be notified of the cancellation and it will be forced to procure insurance coverage through its own channels. The bill, at whatever rate the bank gets, will be passed on to the homeowner to pay.

Can I Cancel Homeowners Insurance without Penalty?

Yes, you can cancel your homeowners insurance policy in Texas without any penalties if you cancel just before your policy expires and is due for renewal. This way, the insurer will take your cancellation as a non-renewal. Ensure you cancel your policy officially without allowing it to lapse because having a lapse will make insurance companies consider you a higher risk.

After Getting Homeowners Insurance, Can I Cancel it without Penalty?

After getting your homeowners insurance policy, canceling without any penalties or fees will depend on the cancellation policy of your specific insurer. Generally, homeowners insurance does not have a cooling off period, so the cancellation will have a cost.

When Should you Cancel Homeowners Insurance?

You should cancel your homeowners insurance when you have sold your home. After the new owners go through closing and the home is officially no longer yours - feel free to cancel the coverage.

Do I Get a Refund of Unused Premiums if I Cancel Homeowners Insurance Coverage?

Yes, in most cases, you will get a refund of your premium when you cancel your policy. In Texas, most homeowners insurance providers will reimburse your unused premiums after deducting cancellation fees (if applicable).

How Can I Reinstate Canceled Homeowners Insurance?

You can reinstate a canceled homeowners insurance by taking the following steps:

  • Contact your homeowners insurance provider about your decision to reinstate your canceled policy

  • Purchase a new policy agreement after studying the policy document

  • Begin paying your premiums.

Make sure to contact a Texas-licensed property insurance agent to guide you through the reinstatement process.