You get a letter from the mortgage company or you notice that your monthly mortgage payment went up a few dollars. There two variables that cause most increases in a fixed rate mortgage payment; taxes and homeowners insurance. Many homeowners never review their homeowners’ insurance policy renewal statement each year. This is primarily due to most pay into an escrow account held by their mortgage company; the mortgagor pays the taxes and homeowners insurance each year when due. It’s out of mind for most of the year. Yearly the mortgage company will send a letter explaining that the escrow account payment and will increase to cover a shortfall in tax payments or homeowners’ insurance policy premiums.
A good agent will review your homeowners’ insurance policy each year, try to quote a new homeowners’ insurance policy with a lower rate. What affects the rate most times its claims either that you made or in general losses in the region and the cost of doing business. A good example of the regional losses is the recent rise in claims due to Hurricane Sandy. Billions of dollars in damages were submitted to insurance companies; the insurers want to make up for these losses as they are a profit-making operation. A good agent will quote different companies to save you money.
Is it hard to change, NO! Once a new policy is bound the Insurance Carrier will notify your mortgage company. Both will work together to get the policy enforced and paid. The old carrier will prorate the existing premium and return that portion.
At Horizon Insurance we quote from several different companies to get you the best rate to cover your home. For a free policy review and quote call Mike at (215) 642-2723 or drop a note for more information. Include your address and years living at your home and will provide you with a preliminary rate quote.