Bind the new homeowners policy, with an effective date, before you cancel the old one. Then cancel the old policy in writing, effective that same day. The house should not have a day with no policy. Renewal is the simplest day to make the change. A mid-term change works the same way if the new policy is already bound.
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When should I switch, at renewal or in the middle of the term?
Switch on the renewal date when you can, with the new policy effective the morning the old term ends, and with the new policy already bound. A mid-term switch is the same sequence: the new policy is bound with its effective date first, and the old policy is cancelled in writing effective that day. Do not cancel first and shop second. A house with no policy in force is the outcome this order is meant to avoid.
Insurance Code section 678(a) requires the insurer, at least 45 days before expiration, to deliver or mail either an offer to renew or a notice of nonrenewal. For a nonrenewal of a policy that expires on or after July 1, 2020, section 678(c) moves that notice to at least 75 days before expiration. A renewal offer and a nonrenewal notice are different documents. Read which one arrived.
What happens to the premium if I cancel in the middle of the term?
Unless the contract provides otherwise, Insurance Code section 481 entitles an insured who surrenders a policy written for a definite period to the share of the premium that matches the unexpired time, after a claim for loss or damage that has already accrued is deducted. Section 481(b) says a homeowners multiple-peril policy may not treat the premium as fully earned because of a contingency other than the policy's own expiration. That bar does not apply to a policy fee or a membership fee. Section 481.5 defines a personal-lines policy to include a homeowners policy, and it requires the insurer to tender the gross unearned premium to the insured, or to a premium finance company when section 673 applies, within 25 business days after the insurer receives notice of the termination.
What changes when the mortgage pays the premium through escrow or an impound?
Send the new declarations page to the mortgage servicer so the lender's name, the loan number, and the impound record match the policy that will be in force. Section 481.5 requires the insurer to tender the gross unearned premium to the insured, or to a premium finance company when that statute applies. If the servicer paid the old premium from an escrow or impound account, ask the servicer whether a refund paid on the old policy should be applied back to that account. Do not assume the refund check and the impound ledger update themselves.
What is a mortgagee clause?
A mortgagee clause is the part of the policy that names the lender so a covered loss can be paid with the lender's interest protected. The declarations page is the document the servicer asks for when the policy changes. Send the new declarations page to the servicer so the clause and the escrow record can be updated.
What should I compare on the two policies before I switch?
Put the two declarations pages side by side and match dwelling limit, other structures, personal property, loss of use, liability, medical payments, and each deductible. Then match the loss-settlement wording: replacement cost or actual cash value. A lower premium on a smaller dwelling limit, or on actual cash value where the old policy paid replacement cost, is not the same coverage. Our guide on how much homeowners insurance to carry in California walks through how to set those limits from rebuild cost. Also read the exclusions. Earthquake, flood, and backup of a drain or sewer are questions for the new declarations page, not assumptions carried over from the old one.
What if I received a nonrenewal notice, or the house is on the FAIR Plan?
For a policy that expires on or after July 1, 2020, section 678(c) requires the insurer to deliver or mail the nonrenewal notice at least 75 days before expiration, and the notice must state the specific reasons. If that notice comes late, the same policy stays in force, unchanged, for 75 days after the notice is delivered or mailed. Keep the current policy, including a California FAIR Plan policy, until the replacement policy is bound with an effective date. Our page on one admitted policy compared with a FAIR Plan policy plus a difference-in-conditions policy is the place to read that choice. Do not cancel either contract until the new effective date is in hand.
How do I check claims history before I switch?
Insurers use prior homeowners claims when they decide what to offer. You can request your report from the specialty consumer reporting company they used. The Consumer Financial Protection Bureau explains that these companies collect claims on homeowners policies and that you request the report from each company. The Bureau's page on C.L.U.E. says that exchange collects up to seven years of home insurance and personal property claims. Read the report before you shop, and dispute an entry you believe is wrong with the reporting company.
How does a renewal switch compare with a mid-term switch or a switch after nonrenewal?
The order of the switch does not change at renewal, mid-term, or after a nonrenewal. The new policy is bound first, with an effective date. What changes is the deadline you are meeting and the papers you send with the quote.
| When you switch | What to do | What to send us |
|---|---|---|
| At renewal | Bind the new policy effective the day the old term ends. Let the old policy end that day, or cancel it in writing effective that morning if a bill would otherwise renew it. | Both declarations pages, the renewal date, and the mortgagee |
| Mid-term | Bind the new policy with its effective date first. Then cancel the old policy in writing effective that same day. Ask how any unearned premium will be tendered. | The cancellation date you want, the old declarations page, and whether escrow pays the premium |
| After a nonrenewal | Use the 75-day notice under section 678(c). Keep the current policy until the replacement is bound. If the house is on the FAIR Plan, read the admitted-policy comparison before you cancel. | The nonrenewal notice, the expiration date, and the current declarations page |
What steps keep the house insured the whole time?
Follow the list in order so the old policy ends only when the new one has started. Insurance City Agency, LLC prepares the quote at 956 W Robinhood Dr, Stockton, CA 95207, CA License #6003045. Call (209) 670-1556 to walk through the dates.
- Pull the current declarations page and any renewal offer or nonrenewal notice.
- Write the expiration date, the mortgage company, and whether the premium is paid from escrow or an impound account.
- Match limits and deductibles to the guide on how much coverage the house needs, and note replacement cost or actual cash value.
- Request the quote and wait until the new policy is bound, with an effective date on the declarations page.
- Send that declarations page to the mortgage servicer so the mortgagee clause and the impound record can be updated.
- Cancel the old policy in writing, effective the same day the new policy starts. Keep a copy of the cancellation request.
- Ask the servicer, if escrow paid the old premium, how any returned premium should be applied to the impound account.
Can I cancel the old homeowners policy before the new one is bound?
Do not cancel the old policy before the new one is bound. Bind the new homeowners policy with an effective date first, then cancel the old policy in writing effective that same day. The house should not have a day with no policy in force.
Does a mid-term cancellation return unearned premium?
Insurance Code section 481 says that, unless the contract provides otherwise, surrender of a policy written for a definite period entitles the insured to the share of premium that matches the unexpired time, after a claim that has already accrued is deducted. Section 481.5 requires the insurer, on a personal-lines policy including homeowners, to tender the gross unearned premium within 25 business days after it receives notice of the termination.
How many days of notice does a California nonrenewal require?
For a policy that expires on or after July 1, 2020, Insurance Code section 678 requires the nonrenewal notice at least 75 days before the policy expires, and the notice must give the reasons. If that notice is late, the existing policy remains in effect, unchanged, for 75 days from the date the notice is delivered or mailed.
What is a mortgagee clause?
A mortgagee clause is the part of the policy that names the lender so a covered loss can be paid with the lender's interest protected. The declarations page is the document the servicer asks for when the policy changes. Send the new declarations page to the servicer so the clause and the escrow record can be updated.
Where do I request a claims-history report?
You can request your report from the specialty consumer reporting company the insurer used. The Consumer Financial Protection Bureau explains that these companies collect homeowners claims and tells you how to request the report, including the C.L.U.E. report. Read it before you shop, and dispute an entry you believe is wrong with the reporting company.
Reviewed by Santo Militello, California-licensed agent and owner (CA Lic. #1737723). Our licensed team brings more than 70 years of combined insurance experience. Insurance City Agency, LLC · CA License #6003045 · 956 W Robinhood Dr, Stockton, CA 95207 · (209) 670-1556. Last reviewed 2026-10-22.
Insurance City Agency, LLC · CA License #6003045.
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