Ah, the mysteries of how to replace your homeowners insurance. Most people buy home insurance once for a home. They set up impound accounts and then they don't think about their home insurance again for a long time.
Well, in a perfect world that's the way it would work. You would buy a policy, it would cover your house properly and the price would stay the same forever. Unfortunately, home insurance rates have seen large increases over the last few years. And, in certain situations some home insurance companies have been non renewing policies. That means you will need to look into buying a new policy. Now, how do you do that when you have an impound account?
The good news is that it really is a simple process. This year I replaced my own home insurance policy. My premium went up 800 dollars from the prior year. Even with going with a higher deductible and a less expensive policy it was still expensive with the old company.
When I decided to shop the policy the first thing I did was call my mortgage company. And, that's what you should do to. Let your mortgage company know that they shouldn't pay your old company until you ask them to. That saves you from having to get a refund from your old company and reapply it to your account. Once you decide on your new company you can have that new home insurance company bill your impound account. They will then pay the new company and you have successfully replaced your insurance.
Now, if you are mid term you can also cancel your home policy. You would set up the new policy with your insurance agent. Call and cancel the old policy with your old insurance company. Get the refund mailed to you. Then take those funds and add them back into your impound account. Let your mortgage company know you switched and have them pay the new company.
If you are buying a new home you just need to pick your home insurance company. Let the agent know who is handling your escrow. They will then get in touch with them and make sure proof of insurance gets sent over along with a bill. The escrow company will pay the year and you will be good to go.
Now, if you pay for your home insurance yourself. All you need to do is pay the new company and have get a refund from your old company.
There is no reason to be afraid to switch your home insurance. It is an easy process. Your insurance agent will be happy to help you along the way. If you need a quote for home insurance give us a call at 951-395-0754. We have great options along with great rates.
Well, in a perfect world that's the way it would work. You would buy a policy, it would cover your house properly and the price would stay the same forever. Unfortunately, home insurance rates have seen large increases over the last few years. And, in certain situations some home insurance companies have been non renewing policies. That means you will need to look into buying a new policy. Now, how do you do that when you have an impound account?
The good news is that it really is a simple process. This year I replaced my own home insurance policy. My premium went up 800 dollars from the prior year. Even with going with a higher deductible and a less expensive policy it was still expensive with the old company.
When I decided to shop the policy the first thing I did was call my mortgage company. And, that's what you should do to. Let your mortgage company know that they shouldn't pay your old company until you ask them to. That saves you from having to get a refund from your old company and reapply it to your account. Once you decide on your new company you can have that new home insurance company bill your impound account. They will then pay the new company and you have successfully replaced your insurance.
Now, if you are mid term you can also cancel your home policy. You would set up the new policy with your insurance agent. Call and cancel the old policy with your old insurance company. Get the refund mailed to you. Then take those funds and add them back into your impound account. Let your mortgage company know you switched and have them pay the new company.
If you are buying a new home you just need to pick your home insurance company. Let the agent know who is handling your escrow. They will then get in touch with them and make sure proof of insurance gets sent over along with a bill. The escrow company will pay the year and you will be good to go.
Now, if you pay for your home insurance yourself. All you need to do is pay the new company and have get a refund from your old company.
There is no reason to be afraid to switch your home insurance. It is an easy process. Your insurance agent will be happy to help you along the way. If you need a quote for home insurance give us a call at 951-395-0754. We have great options along with great rates.
