Writing a Home Business Insurance Cancellation Letter
Writing a Home Business Insurance Cancellation Letter (with Samples) Use these sample home business insurance cancellation letters as templates for your formal notification.
There are many different reasons for a person to cancel their home business insurance policy. In some cases people have gotten better rates with a competing home businessinsurance provider.
No matter what the reason, cancelling a home business insurance policy is something that should be handled properly. If not done correctly, it could lead to costly miscommunication between the home business insurance company and the policyholder. Doing it right is a way to avoid any unnecessary charges.
Deciding when the time is right to cancel a home business insurance policy will depend on a number of factors. Most policies have a section that permits the holder to stop insurance coverage at any time.
Before deciding the best time to cancel a home business insurance policy, the holder should know the specifics of the policy’s cancellation section. Depending on the conditions, the home business insurance company may charge a fee if the policy is canceled prior to completion of the policy period.
Phone Call Won't Meet All Requirements
Once the decision has been made to cancel a home business insurance policy, the current home business insurance company should be contacted. The cancellations policies of companies vary, but in most cases a phone call won’t meet all the requirements.
Some home business insurance companies provide an internal form that must be completed and returned before the policy is canceled. In all cases, the policyholder should draft a home business insurance cancellation letter.
Give Reason For Cancellation
If the reason for cancellation is poor service, this is an opportunity to provide the details of what happened. If a person is canceling their home business insurance policy for any reason they don’t want the company to know, it does not need to be mentioned in the cancellation letter.
Include Policy Number
It’s also important for a person to include their policy number as well as other contact information such as phone number and address. An Email address is optional. There are companies who want to confirm the identity of the person who wrote the letter before the cancellation can take effect.
Seek A Refund
If the home business policy cancellation occurs at the end of the policy period, there will be no need to seek a refund. Some people do pay the entire policy prior premium prior to it taking effect. In this case, if the policy is canceled during the policy period, a refund will be due to the policyholder.
If a person is canceling their home business insurance policy because of going to another company, it’s important they try to avoid experiencing a gap in their home business insurance coverage. It’s best to make certain the home business home business insurance policy starts at the exact time the old one stops.
If there is a period of time between when the old policy stops and the new one begins, it could create a gap in home business insurance coverage. If a home business owner experiences an accident during a gap in home business insurance coverage, they will be solely responsible for all damages and any legal issues that could occur as a result.
If a person feels the need to cancel their home business insurance for any reason, it’s something that can be easily accomplished. If done correctly, it will enable the policyholder to move on to preferred coverage, obtain a deserved refund and experience no gaps in coverage.
Sample 1 - Home BusinessInsurance Cancellation Letter Date
Name of Insurance Cancellation Department Address
Re: Policy Number
To Whom It May Concern:
This letter is to inform you I wish to have my home business insurance policy referenced above cancelled effective (cancellation 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.
Policy holder’s name Address
Sample 2 - Home Business Insurance Cancellation Letter Today’s Date
Attn: Cancellations Department Insurance Company Name Insurance Company Address
Re: Cancellation of Home Business Insurance Policy #:
To Whom It May Concern:
I regret to inform you that I, [Name of policyholder along with home business insurance policy #] have decided to terminate my home business 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.
Name of policyholder Address
Sample 3 - Home Business Insurance Cancellation Letter Today’s Date Name on Policy Address of Policyholder
ABC Insurance Company Address of Company
RE: Home Business Insurance Policy #
Please consider this letter as a formal request to cancel the referenced home business insurance policy. Please stop all debits or charges for premium payments. The effective date of policy cancellation is [cancellation date].
I am also requesting written confirmation of the cancellation and the return of any premiums. The cash value of the policy should also be sent with any returned premium. This action needs to occur within a period of 30 days from the receipt of this letter.