Many homeowners in Massachusetts pay their homeowners insurance premiums through an escrow account that’s linked with their mortgage. If your homeowners premiums are paid this way, it’s still easy to switch insurance providers. Here’s a step-by-step guide on how to.
When Paying My Homeowners Insurance Via Escrow, How Do I Switch Insurers?
Step 1: Request Quotes for Homeowners Insurance Policies
Start by requesting homeowners insurance quotes from different Massachusetts insurers, just as you would if you wanted to compare policies and paid your premiums directly through the insurer. You don’t need to provide payment information when getting quotes, so the escrow account doesn’t come into play at this point in the process.
Of course, as you request quotes you’ll want to pay close attention to the coverages and limits of each policy. Comparing policies involves looking at the protections they provide as well as the price they cost. Additionally, you should request quotes from a variety of insurance companies because insurers frequently have different offerings.
Step 2: Select the Best Home Insurance Policy
Once you have quotes from different insurance companies, select the option that provides the coverages you need at the most affordable rate. Paying your home insurance premiums through escrow normally doesn’t limit the insurers you can purchase a policy from. You’re usually free to select any insurer’s policy, and you should be able to pay the premiums of any new home insurance policy through escrow.
Step 3: Send the Insurer Your Mortgage Company’s Contact Details
As you purchase a new home insurance policy, send your new insurer the contact information of your mortgage company. They’ll likely need the mortgage company’s name, address and phone number, along with your account number. If any additional details are needed, the insurer will usually ask you for the information they need.
The insurer will use this information to send your insurance bill to your mortgage company. In most cases, insurers send bills to mortgage providers just like they send bills to directly homeowners when premiums aren’t paid through escrow.
Step 4: Notify Your Escrow Holder That You’re Switching Insurers
Next, you’ll want to make sure you contact your old insurance provider and tell them you won’t be renewing your current home insurance policy.
If you fail to do this, your old insurer may renew your policy and send the bill to your mortgage company. When this happens, two insurance bills (one for the old and one for the new) are sent to the mortgage provider -- and both bills are often paid from the escrow account. The increased cost is simply passed onto the homeowner by raising their monthly payments.
Canceling your old insurance policy will ensure you only pay your new policy’s premiums, and your monthly mortgage payments shouldn’t increase on account of having two insurance policies.
Step 5: Confirm the Coverage Dates
At this point, you should be all set with your new insurance policy. Just take a moment to confirm the last date of your old policy and the first date of your new. There should be no coverage gap between them, so you’ll have continuous coverage.
Have an Agent in Massachusetts Help You
To make the process of switching homeowners insurance policies as simple as possible, contact a homeowners insurance agent professional from Paul T. Murphy Insurance. Our independent agents can take you through the entire process, from requesting quotes for different policies to confirming the coverage dates.