Homeowners should think twice about terminating homeowners insurance. For anyone who immediately quits out of anger about a premium increase risks a dangerous insurance gap. Experts advise insured persons to look around for a cheap alternative before leaving office.
Many homeowners think about a termination of their homeowners insurance, especially if the insurer increases the contribution. In view of the increasingly occurring severe storms and thunderstorms, which cause great damage and cost the insurance companies a lot of money, premium increases are not uncommon. Customers who do not agree to price increases may face the termination. But just before warn consumer advocates.
Residential building insurance: termination is possible
In the past, storms have caused so much damage that insurers have announced some significant price increases. In some cases, it has even happened that the premiums for homeowners insurance have doubled. Insurers such as Allianz or Ergo have sent change announcements to many of their insured persons. The customers are then faced with the choice: either they agree to the higher contributions and a higher deductible in the event of damage or they threaten the termination. Insurers have the right to terminate the contracts with a three-month notice period at the end of the insurance year or immediately after a claim.
First accept expensive offer, then change
Consumer advocates advise affected homeowners from accepting immediate termination of homeowners insurance. Rather, customers should first accept the more expensive offer of their insurer and then look after a more favorable housing protection. After all, whoever quits and then looks for a new insurance company will definitely find it harder to get a cheap yet powerful protection for their own home. In the worst case, he finds no homeowners insurance more.
Homeowners insurance: Termination only with new contract
The change to a new contract is much easier if the old protection has not been terminated. Only then, if a new homeowners insurance really nothing in the way, the termination should be submitted to the old provider. Homeowners who finance their home ownership through the bank must obtain the consent for the change.