Changing your Insurance from a Mortgage? It’s Simple!

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It is important to state that it is the insured’s right to change their insurance carrier at any time for any reason. For example, changing could save money and reduce mortgage payments. 


What is an escrow account? An escrow account is an account where the mortgage lender will keep a small portion of each mortgage payment and use it towards the insured’s homeowners insurance and any property taxes. Mortgage companies require an escrow account to verify there are adequate funds for the payments. 


The decision to get an escrow account is up to the mortgage lender and the insured, it will determine if the payments are automatic or if the insured wants to make payments themselves. 


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If the insured decides to switch insurance carriers, ensure the mortgage company has adequate notice of the insurance change in order to redirect any funds. If the insured switches during a policy term, the prior insurance company will owe for the unused premium, which is sent directly to the insured. 


The process is simple and begins with obtaining the declarations page. Make sure to shop around and get the best option. If your insurance premium is reduced, then your mortgage payment will be lowered. Never cancel your previous policy without obtaining a new policy first. You will risk a gap in coverage during that time. Your escrow account will typically pay for your new policy in full. After getting the new policy, notify your prior insurance company of the switch, so they cancel your policy and get you any unused premium. Lastly, notify the mortgage lender of any changes and ensure they stay up to date with it. Remember it is a simple process and can be done at any time, just make sure that your mortgage lender is kept up to date with the process and if you have any further questions, we are here to help! 



Call us for a Quote or for Changing Renewal Dates 

Elementary is focused on helping you increase your savings, raising your deductible, providing you with discounts and applying credit as much as possible. Learn more about Elementary homeowners insurance products, or if you’re ready to take the next step, call (813) 212-8505 for a FREE no obligation quote.
Location: 1101 E Cumberland Ave, Tampa, FL 33602, USA

Comments

  1. Otte Family InsuranceAugust 27, 2021 at 8:31 AM

    I impressed with the way you providing relevant and thorough information to the users. I gone through 3-4 blogposts and all are very informative. Otte Family Insurance

    ReplyDelete

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