If you have a mortgage, there is a good chance that you have an escrow account that helps you pay for your home insurance and property taxes each year. This is just wrapped up in your monthly payment so that you don’t have to think about it. There are several homeowners that think that it is hard to switch insurance companies when you have an escrow account set up to pay for your home insurance. However, this isn’t true. Signet Insurance Group is here to talk about what you need to do if you are wanting to change insurance companies when you have an escrow account.
Know Your Insurance Coverage
Before you make the switch from your current home insurance company to a new one, you want to know what your coverage looks like. It might be tempting to switch over because there is another company that will give you a policy that is far cheaper, but you want to make sure that the coverage is as good as the company you are currently with. Contact your current insurance company and get a declarations page that will clearly lay out all of the coverage they offer you under your policy.
Check the Mortgage Clause
If you have decided to go with a ew company, you need to make sure all the information is right for the mortgage clause. This is the area that clearly states the lender’s official name and address. If this isn’t filled out properly, the lender might not get the info that is needed, and they might think that you aren’t insured. If that’s the case, they will purchase a policy for you that will more than likely be more expensive and won’t provide coverage that is as good.
Buying & Canceling Insurance Policies
Before you hurry to cancel your old policy, you need to make sure you have purchased the new one first. This way, you aren’t without coverage for a few days before the new one takes effect. Once you have purchased the new policy, you can go ahead and call the old insurance company and cancel your policy.
Send Refunds to Your Escrow Account
It is common to get a check in the mail from the insurance company because the escrow account pays the home insurance upfront at the beginning of the year. Any check that you get reimbursed should be sent to your escrow account to make sure you don’t get slammed with a bill later. If there is a shortage, you will want that money to cover it so that you don’t have to later.
Home, Business & Auto Insurance Agency in Henderson, North LV, Reno, Spring Valley, Enterprise, Sunrise Manor, Paradise & Las Vegas, NV
If you are interested in making a change to your home insurance, you can rely on Signet Insurance Group to help you get the best coverage at the best price. We will do the hard work of finding the best policy for you so that you don’t have to. Call us today!
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