Reviewed and approved by Samuel Corso, licensed Texas insurance agent.

Published July 30, 2026 · Updated October 1, 2026

Can you switch home insurance companies in Texas? How and when to do it

This guide covers switching home insurance companies in Texas before your policy ends, using the Texas Department of Insurance (TDI) consumer pages as its sources.

The short version. For a mid-term home insurance switch in Texas, TDI's Home insurance guide defines cancellation as either you or the insurance company stopping coverage before the policy's end date, and says if either cancels, the company must refund any unearned premium within 15 days after the date of the cancellation. TDI's shopping tips say never to cancel a policy until you get your new policy or a written statement of coverage.

Here's what we'll cover: canceling before the end date, the premium you already paid, the order of the steps, how a mortgage and an open claim can change the timing, and what to compare between two policies besides the premium.

What TDI says about canceling before the policy ends

Cancellation of a Texas home insurance policy before its end date is defined by TDI to cover a policyholder ending the policy as well as a company doing so. TDI's Home insurance guide puts it this way: "Cancellation means either you or the insurance company stops coverage before your policy’s end date." The same guide lists the reasons a company may cancel a policy, such as when you stop paying your premiums or file a fraudulent claim.

A second TDI page, Was your home insurance canceled or not renewed?, is mainly about a company ending a policy, and it adds one line about the policyholder: "You also have the right to cancel your policy early."

Both of those TDI pages also describe the company's side. Each says a company must give you 10 days' notice before it cancels your policy.

For a homeowner thinking about a switch, renewal is one point at which you can compare policies, and canceling early is another. Check your policy or ask your agent or company how to request a cancellation.

What happens to the premium you already paid

Premium paid in advance on a Texas home insurance policy that is canceled is addressed in the TDI guide. It says: "If either you or the company cancels your policy, the company must refund any unearned premium to you within 15 days after the date of the cancellation."

The same guide defines the term: "Unearned premium is the amount you paid in advance that didn’t go toward coverage."

TDI's guide then gives its own example. It uses a premium of $100 a month, or $1,200 a year, paid for the full year in advance. If that policy is canceled after one month, the guide says the company would owe $1,100 in unearned premium. These are TDI's example figures and are an illustration only.

In plain terms, TDI's definition ties the refund to the part of the term you paid for and did not use. If you pay monthly or through your mortgage payment, ask your company how any refund would be worked out and where it would be sent.

TDI's advice on avoiding a gap in coverage

When you switch home insurance companies, the order of the steps matters, and TDI's shopping advice puts the new policy first. In the "Avoid gaps in coverage" part of Tips to help you shop for homeowners insurance, TDI says: "Never cancel a policy until you get your new policy or a written statement of coverage."

TDI gives similar advice for a different situation. Its page on canceled or nonrenewed policies, which is about a company canceling or not renewing a policy, tells readers in that position to have a new policy in place before the current policy expires.

A gap is any stretch of time when neither policy is in force, and damage that happens during a gap may not be covered by either policy. Steps you can take: ask the new company to confirm in writing that the policy is in force and the date it starts, then ask your current company to cancel as of that same date, and keep both confirmations.

Switching when you have a mortgage

If you have a mortgage, your lender has an interest in your home insurance, so a switch may involve the lender too. According to the TDI guide, if you still owe money on your home, your lender will require you to have home insurance.

Two things to check when you switch:

• The mortgage company on the paperwork. Check that the new policy's declarations page lists your lender correctly. TDI's How to read your auto or home insurance declarations page says that page shows your policy number, policy period, effective date, and your mortgage company, if you have one.
• The type of coverage. Compare a new quote against what your lender requires. On this point, TDI's shopping tips say: "Most mortgage companies will require that you have a replacement cost policy as a condition of your loan."

If your premium is paid from an escrow account, ask your lender what it needs before the old policy is canceled.

Switching while a claim is open, or just after one

Switching home insurance companies while a claim is still open calls for extra care, because a claim can involve payments that come after the damage. The TDI guide does not discuss switching during a claim. In its general section on how companies pay claims, it says that if you have a replacement cost policy, most companies pay with two checks, and that the company gives you the check for the amount it kept for depreciation after it gets the bill for the finished job.

That means a claim may still have a payment outstanding while repairs are under way. If you have an open claim and are thinking about canceling, ask your current company to tell you in writing how the claim will be handled and what remains payable after the policy ends. How an open claim is handled depends on your policy and your company, so a general answer is no substitute for your own company's written answer.

Is it bad to switch home insurance companies?

TDI's consumer advice treats comparing insurance prices as something to do regularly. Its tip sheet How to shop smart for insurance, which covers insurance shopping in general, says: "Make sure to check prices for home and auto policies at least every three years."

That is TDI's general guidance on how often to look. It does not predict what any homeowner will be quoted or whether a different policy will be available for a particular home.

The next section lists what to compare so the two policies can be read side by side.

What to compare between two home insurance policies

Comparing two Texas home insurance policies starts with the declarations page of the policy you have now. According to TDI's declarations page tip sheet, the page summarizes your coverages and deductibles, and having it handy will help if you shop for a new policy.

A lower premium can reflect different coverage, so compare the items below line by line.

• The coverage amount on the house. Make sure you have enough coverage to replace your house and your personal property if they were destroyed, as TDI's shopping tips put it.
• Replacement cost or actual cash value. Home policies provide one or the other, according to the TDI guide, which says actual cash value coverage pays replacement cost minus depreciation. Does home insurance cover replacement cost in Texas? walks through the difference.
• Each deductible, in dollars. You might have separate deductibles for damage from wind and hail and for other perils like fire and theft, per TDI's declarations page tip sheet. How the wind and hail deductible works shows how a percentage deductible turns into a dollar figure.
• Roof coverage. Ask how a policy you are quoted covers the roof. TDI's Is your home policy up for renewal?, which is about renewals, says that when a roof reaches a certain age a company might switch the policy from replacement cost coverage to actual cash coverage, and that if a roof is in poor condition the company might drop roof coverage altogether.
• Endorsements and exclusions. You can read a new policy the way the renewal tip sheet suggests for a renewal, which is to look at the last pages for new endorsements or exclusions and ask your agent or company to explain anything you don't understand.
• Whether the company or agent is licensed. You can call TDI's Help Line at 800-252-3439 to make sure the company or agent you're considering is licensed, according to its shopping tips.
• The company's complaint record. The same number can be used to check a company's complaint record before buying a policy, per TDI's shop smart tip sheet.
• Sample prices. TDI's shopping tips suggest using TDI's HelpInsure to get sample prices and compare policies, then contacting companies for price quotes.

What to do with this

Switching home insurance companies in Texas comes down to a short list of steps you can take, in order.

• Pull your declarations page. Write down your dwelling limit, each deductible in dollars, and whether your roof is covered at replacement cost or actual cash value.
• Compare before you cancel. Wait for your new policy or a written statement of coverage before canceling the old one, as TDI's shopping tips advise.
• Set the dates deliberately. Ask for the new policy to start on the date the old one stops, and get both dates in writing.
• Tell your lender. If your insurance is paid from escrow, ask the lender what it needs from you.
• If a claim is open, ask first. Get your current company's written answer on how the claim will be handled before you cancel anything.
• Watch for the refund. If either you or the company cancels, the company must refund any unearned premium within 15 days after the date of the cancellation, according to the TDI guide.

Key facts

• TDI's Home insurance guide defines cancellation as either you or the insurance company stopping coverage before the policy's end date.
• According to the same TDI guide, if either you or the company cancels your policy, the company must refund any unearned premium within 15 days after the date of the cancellation. The guide defines unearned premium as the amount you paid in advance that didn't go toward coverage.
• In the guide's own example, a $1,200 annual premium paid for the full year in advance and canceled after one month leaves $1,100 in unearned premium.
• Per TDI's shopping tips, a policy should never be canceled until you get your new policy or a written statement of coverage.
• According to TDI's page on canceled or nonrenewed policies, a company must give you 10 days' notice before it cancels your policy.
• On mortgages, the shopping tips from TDI say most mortgage companies will require a replacement cost policy as a condition of the loan.
• The shop smart tip sheet from TDI says to check prices for home and auto policies at least every three years.
• The number TDI's shopping tips give for making sure a company or agent you're considering is licensed is its Help Line, 800-252-3439.

Sources: Texas Department of Insurance, Home insurance guide, Was your home insurance canceled or not renewed?, Tips to help you shop for homeowners insurance, How to shop smart for insurance, How to read your auto or home insurance declarations page and Is your home policy up for renewal?.

Take the next step

Before you switch, know your current limits and deductibles, have the new policy confirmed in writing, and line up the dates. If you're shopping because your premium changed, why did my home insurance go up in Texas covers reasons a premium can change, and how to choose home insurance in Texas covers what to weigh besides price.

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