Authors: Gosha Olszewski Neal Gardner
Mortgage rates in the US are expected to ease slightly in 2025 after reaching 7% in January, providing some relief for prospective homebuyers. According to the Federal National Mortgage Association — commonly known as Fannie Mae — the average 30-year fixed mortgage rate is projected to hover around 6% this year. If rates stabilize in this range, it could positively affect home insurance costs.1 Lower mortgage rates make homeownership more affordable, increasing demand for homes. As more people buy homes, insurers compete for business, which can lead to lower premiums.
When mortgage rates drop, refinancing can lower your monthly payments, free up cash for savings or investments, and help you secure better loan terms. If your home equity has increased, you may be able to remove private mortgage insurance (PMI), saving you hundreds annually. A higher credit score could qualify you for a lower interest rate, reducing long-term costs. Additionally, refinancing can help shorten your loan term, letting you pay off your home faster or switch from an adjustable-rate mortgage to a fixed rate for stability.
Why is now a good time to review your home insurance?
Since many homeowners escrow their insurance with their mortgage payments, any mortgage change is a great time to review your coverage. Unlike refinancing, shopping for better insurance rates won't impact your credit score and can lead to savings. If you've made renovations or major purchases, updating your policy ensures adequate protection. Rising home values can also affect premiums, so comparing options may secure a better rate. Additionally, bundling home and auto insurance can unlock extra discounts.
A quick review of your policy now can help you optimize coverage, lower costs and ensure you have the right protection in place.
How can a broker help you save time and money?
A broker simplifies the process of finding the best insurance by providing expert guidance and access to multiple A-rated insurers. Instead of comparing quotes on your own, a broker presents tailored options, saving you time and effort. Brokers help you navigate complex policy details, ensuring informed decisions on coverage options and limits. Plus, they conduct annual reviews to keep your coverage competitive and cost-effective. With a broker, you get the best rates, customized coverage and ongoing support — all without the hassle of shopping alone.
Five-step process to switch your homeowner's insurance
Whether you're looking for improved coverage, more affordable rates or improved customer service, follow these steps to switch your homeowner's insurance plan:
Expert advice
1. Shop for a new policy
Finding the right insurance policy starts with comparing quotes and ensuring they meet your specific coverage needs. Shopping can be time-consuming and overwhelming; at this stage, hiring a broker like us can make it effortless. We take the hassle out of shopping for insurance by providing quotes from more than 30 A-rated carriers, conducting annual policy reviews to secure the best coverage and rates, and offering expert guidance at every step.
Plus, we support you through the claims process if the unexpected happens. Let us handle the details so you can have peace of mind.
2. Review the mortgagee clause
Check that your new insurance accurately lists your lender's name, address and loan number. Accuracy is crucial because it guarantees that, if you pay for your insurance through an escrow account, there won't be any problems with your mortgage payments or lender requirements.
3. Get the new policy
Complete your purchase after selecting the appropriate policy. To prevent a coverage lapse, schedule the start date of your new policy to fall on the same day your previous policy ends. Verify again that the new insurance coverage is on par with or better than that of your old one.
4. Cancel your previous policy
Check the precise expiry date and inform your present insurer of the cancellation. Inquire about any early cancellation costs and ask for a reimbursement for unused premiums. For your records, ensure you obtain a formal confirmation of the cancellation.
5. Contact your lender and confirm the changeover
Give your lender the declaration document for the new policy so they can amend their records if you pay through escrow. To avoid a shortage, transfer any premium returns to your escrow account. Finally, recheck all the information and confirm with your new insurer that the policy migration is complete.
Connect with Gallagher
Working with a broker can make the insurance process much simpler. As experts, we provide guidance every step of the way, ensuring you make informed decisions. For personalized advice, contact our insurance advisors to find the best coverage for your home.
