What Happens When You Change Homeowners Insurance? 
This is generally a seamless process . Since most homeowners policies are handled by a mortgage company they are quite accustomed to the process . The homeowner will need to notify the former insurance company so that their policy can be cancelled . The date selected for cancellation is the same date that the new policy is effective . Often the mortgage company will have enough in their impound account to pay the first annual premium . They should have enough once they have collected the unused premium from the previous insurer . 