How to cancel your home insurance

Contrary to popular belief, there is no rule stating that you have to see out your home insurance policy for the full year. In fact, you can cancel at any time. There may be a small cancellation fee but it probably won't be big enough to deter you.

How do I cancel my home insurance?

It's pretty straightforward. Follow these steps below.

1. Go to your insurer's website and see if they have an option to cancel online. If they do, follow the prompts.
2. If there's no option to do this online, call your insurer and follow the prompts. If you feel awkward about having to call someone to cancel, here's an easy script to follow.

Script to follow to cancel your home insurance premium

You: Hi, I'm calling to cancel my home insurance policy please. Can you let me know what I need to do to organise this?
Them: I'm sorry to hear that you're cancelling. Do you mind telling why you'd like to cancel your policy?

At this point, you can either tell them why you're leaving but if you want to avoid further discussion, you can use our prepared response.

You: It's just not a priority for my budget at the moment.

At this point, they will likely offer you a cheaper premium. If you still don't want the insurance, just thank them for the offer and state that you'd still like to cancel.

Them: No problem, we can process this on our end and arrange for the refund of your unused premium.
You: Thank you.

Can I cancel my home insurance policy at any time?

Yes. If you decide to cancel for any reason, all you have to do is let your insurer know. There might be a different way to cancel your policy depending on how you’re paying:

• If you're billed monthly. If you pay your premium on a monthly basis, you’ll be required to finish out the month you’ve already paid for but your policy will end after that. You may have to pay a small fee.
• If you pay annually. If you’ve already paid for the year in advance, you’ll be required to finish out the current month. Your policy will end after that and you’ll receive a refund for the months you didn’t use. You may have to pay a small fee.
• If you’re still in the cooling-off period. If you cancel within the cooling-off period (usually anywhere from 14 to 21 days) and you haven’t made a claim, you’ll receive a full refund of everything you’ve paid.

Are there any cancellation fees to cancel home insurance?

If you're within your cooling off period, then no. If you're outside of your cancellation period then there may be a small fee. We've outlined all the cancellation fees we know of from popular providers. If your provider isn't listed below, refer to your product disclosure statement (PDS) as it'll be written in there.

Brand	Cancellation fees more info button	Cooling off period more info button	Contact details for cancellation	More info
Youi	$22	20 days	Call Youi on 13 9684	More info
Budget Direct	$40	21 days	You can log into their online policy manager or chat online.	More info
QBE	Not mentioned in PDS	21 days	Call QBE on 133 723	More info
ALDI	Not mentioned in PDS	21 days	Call ALDI on 1300 407 021	More info
Huddle	No cancellation fee	14 days	You may cancel your policy by visiting their website, contacting them on 1300 777 200, or via email at help@huddle.com.au.	More info
Honey	Not mentioned in PDS	21 days	Call Honey on 137 137	More info
Australia Post	Not mentioned in PDS	21 days	Call Australia Post on 13 70 11	More info
Kogan	Not mentioned in PDS	21 days	Call Kogan on 1300 034 888	More info
Qantas	$40	21 days	Call Qantas on 13 49 60	More info

These cancellation fees are accurate as of October 2024

When will I not be able to cancel my policy?

There is no situation where you can’t cancel your policy. As long as you let your insurer know you want to cancel and you pay the relevant fees, you should have no problem cancelling.

If you cancel within your cooling-off period and you have made a claim, you can still cancel but you won’t receive any refund for the period you were insured.

FAQs

• Why shouldn't I cancel my home insurance policy?

  If you're cancelling without buying a different policy, this is risky and should be carefully considered. If anything happens to your home in the time between when you cancel and when you buy a new policy, you won't be covered.

• Can you transfer a home insurance policy to someone else?

  No but you can add someone else to the policy alongside yourself. If you want to be completely off the policy then your insurer can arrange this for you but it'll likely be the equivalent to taking out a new policy as they'll need all the info of the new main policyholder and the premium could change.

• Can I transfer my policy to another home?

  No. Your premium is calculated based on location, house details and associated risk. Because of this, you can't transfer policies between homes. What you can do is tell your insurer that you've moved and that you'd like to arrange to cancel your existing policy on the old home and start another policy on your new home. They'll be able to arrange a new quote for you that meets your new needs.

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio