Switching home insurance is not complicated - but it has one golden rule: the order. Anyone who cancels first and only then looks for new cover risks the one thing that matters most: continuous protection. Here are the seven steps, in the order that works well in practice.
- Golden rule: new cover first, then the old one - only cancel once the new cover's start is certain.
- Cancellation is valid only in writing, in the way and within the deadline set out in the policy terms - typically under the March-window rules, or otherwise the renewal rules.
- Switching does not end at the signature: checking the new policy, settling the last premium with the old insurer, and - with a mortgage - notifying the bank all close the loop.
Steps 1-3: comparison and decision
1. Map out what you have: get the policy out, list the sums insured, cover and deductible - this is your baseline (a policy review). 2. Offers: an online calculation (in Hungarian) and/or a broker request for quotes from several insurers - update the figures to reflect reality at this stage, rather than copying them from the old policy. 3. Substance comparison: using the criteria table, by price AND substance - and if your existing contract wins, you can stop right here: staying put can be the right decision too.
Steps 4-5: new contract first, then proper cancellation
4. Sign the new contract so that the start of cover lines up exactly with the end of the old one - typically 1 May for a March switch, or your renewal date for a renewal-based switch (when cover starts). 5. Cancel the old contract in writing, through the channel set out in its terms: under that year's March-window rules in March, or otherwise typically at least 30 days before the renewal date. Keep the proof of sending or the confirmation you receive.
If you arrange the new contract through a broker, I can also take on lining up the start date and preparing the cancellation notice - the signature and the decision stay with you.
Steps 6-7: the administrative close-out
6. Settle the old side: the premium for the last period is still due up to the end of cover - settle it so nothing is left in dispute, and keep the cancellation confirmation. 7. Check the new policy: sums insured, addresses, optional covers, deductible, discounts - five minutes that heads off a lot of hassle later (the typical signing mistakes). For a mortgaged property, there is an extra step: notifying the bank and setting up the new mortgagee clause - in detail: switching with a mortgage.
What most people do not think of
Three small things that matter a lot: do not copy the sums insured from the old contract into the new one - update them (real rebuilding value, a realistic contents figure) - switching is an ideal moment to put things right; check the new terms' waiting periods for certain covers, typically for the special risks; and keep the old contract's paperwork in a folder for a while longer - you may need it for a claim reported later that relates to an earlier event. The full list in tickable form: the switching checklist.
And of course, you do not have to go through it alone: as a broker, I can guide you through the whole process - comparison, new contract, preparing the proper cancellation, coordinating the banking side - though you're the one who has to sign the cancellation and the bank declarations yourself. Advice is free of charge: book a time.
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