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Individuals who wish to cancel an insurance policy will need to do so in writing. The letter will then be mailed to the insurance company via the postal service.
This is the best method to contact insurance companies and effectively communicate intentions.
A letter also prevents policy holders from having to talk directly to the representative of a company. Writing a homeowners insurance cancellation letter can easily be done by following a set of steps.
Review Policy Information
Canceling a homeowners insurance policy can be done at any time. Homeowners insurance policies do not have any type of restriction that limits rights to cancel a policy.
Review the information included with the policy to ensure the proper cancellation procedure is used. The next step is to prepare a rough draft of the homeowners insurance cancellation letter.
Prepare Rough Draft
A rough draft can be typed in a text editor on a computer or a regular piece of paper. The first thing to state on the rough draft is the date. This needs to placed in the upper left corner of the document. Write or type the name on the policy and their address below the date.
Below the address is the name of the insurer. Include the contact person if addressing an agent or company representative. A subject line will go on the next line with the account number.
Opening Paragraph
Begin the opening paragraph by requesting the cancellation of the homeowners insurance policy. Make sure to add a sentence stating that all charges or debits for payment be stopped.
The next sentence should state the date when the policy is to be effectively canceled. Make sure to send any payments that are due if the letter is not ready to send before the monthly premium due date. The homeowners insurance company will refund any premium that was overpaid.
The Salutation
Include a salutation at the end of the letter. This will ensure that there is no question about the intent to cancel the policy. Include the word “Sincerely” or use “Best Regards” for the salutation. This is the final part of a homeowners insurance cancellation letter. Make sure to sign the letter under the salutation.
Final Steps
The next step is to create a final letter from the rough draft. This can be done by sending the letter over to a printer or by typing a new letter from the paper.
Make two copies of the cancellation letter. Make sure to sign one copy and send it to the insurance company. The second letter is for personal records.
Sample 1 - Homeowners Insurance Cancellation Letter
[DATE]
[Name on Policy]
[Address of Policy Holder]
[City, State, Zip]
[XYZ Insurance Company]
[Address of Company]
[City, State, Zip]
ATT: Cancellations
RE: Homeowners Insurance Policy [ #4545678]
Please consider this letter as a formal request to cancel the referenced homeowners insurance policy. Please stop all debits or charges for premium payments.
The effective date of policy cancellation is [DATE]. Please send a written confirmation letter to me within [30 days] after the cancellation takes effect. Please refund any and all unused portion of my premium.
I look forward to hearing from you.
Sincerely,
[Name of Policy Holder]
Sample 2 – Homeowners Insurance Cancellation Letter
[Today’s Date]
Attn: Cancellations Department
[Insurance Company Name]
[Insurance Company Address]
Re: Cancellation of [Homeowners Insurance Policy #]:
To Whom It May Concern:
I regret to inform you that I, [Name of policyholder along with homeowners insurance policy] have decided to terminate my homeowners insurance coverage effective immediately.
The reason for my decision is based on finding a more comprehensive coverage for a lower cost. Please, send me a written confirmation of the cancellation for my records at your earliest convenience.
Sincerely,
[Name of policyholder]
[Address]
Sample 3 – Homeowners Insurance Cancellation Letter
[Today’s Date]
Attn: Cancellations Department
[Insurance Company Name]
[Insurance Company Address]
Re: Cancellation of [Homeowners Insurance Policy #]:
To Whom It May Concern:
I regret to inform you that I, [Name of policyholder along with homeowners insurance policy] have decided to terminate my auto insurance coverage effective immediately.
The reason for my decision is based on selling my home. Please, send me a written confirmation of the cancellation for my records at your earliest convenience.
Sincerely,
[Name of policyholder]
[Address]