Misconceptions about switching your homeowner’s insurance
Yes, you can switch your homeowners insurance in escrow… and you could even save some money too!
Switching to a different home insurance company could help you make sure you’re getting the right level of protection for your needs. It could also save you hundreds of dollars each year. If you combine your home and auto and you could potentially save even more.
Here are some common misconceptions about switching your homeowner’s insurance.
Don’t I need to wait until my renewal to switch insurance companies?
No, you do not have to wait until it’s time to renew to change insurance carriers. Don’t assume you are bound to your insurance company for the duration of your policy.
Isn’t it too complicated to switch?
No, it is a fairly easy process. Escrowing your new insurance policy into your existing home loan is relatively seamless. There is no paperwork and you don’t even have to call the bank! Your insurance agent handles all of the heavy lifting for you. Your agent or insurance company will send the bill and proof of insurance to your lender making the switch easy.
Won’t it require me to do paperwork?
While you won’t have to do a lot of paperwork, you will need to cancel your existing home insurance policy and in some instances, the bank may require to send any refunds you receive back to your lender.
Won’t it cost me money?
Since your home insurance is escrowed into the mortgage, many times there is no need to make a payment to begin your policy. The bank handles the transaction for you. If your new policy is less it can even reduce your mortgage payment.
Will Switching homeowner’s insurance mess up my escrow?
Shopping for a new homeowners insurance policy will not hurt your escrow payments. And getting a quote does not cause any changes to your existing policy. No notifications or alerts will be sent to them or your mortgage company. It is risk-free. It could even reduce your combined monthly mortgage payments. And who doesn’t like to save?
Don’t let misconceptions about escrowed home insurance stop you from getting the right policy that fits your needs.
If it’s been several years since you bought your home or comparison shopped, now would be an ideal time to review your insurance policies. And at Bearingstar we will be sure you get the best insurance coverage at an affordable price.
Contact us today for a quote!Back to Blog