What is a homeowners insurance refund check?

You may receive a refund check from your prior homeowners insurance company if you cancel your policy before it expires, reimbursing you for the coverage you already paid for. You may also receive a refund in the event your lender makes a payment to your old insurer. This can happen if you forget to notify your lender that you switched home insurance companies, or if you forget to cancel the old policy. If you do fail to cancel your old policy, your previous insurer may only refund part of your payment.