If you have a mortgage, your lender will almost certainly require you to have a homeowner's insurance policy. Homeowner's insurance protects you financially in the event that your home is burglarized, damaged, or suffers a total loss. However, the homeowner's insurance policy that you buy when you purchase your home may not be the best option for you in the long run. If you want to try to get lower rates or you're considering bundling your homeowner's insurance with another insurance policy with a different company, you can change your homeowner's insurance at any time. Use the following tips when you plan to switch to a new homeowner's insurance policy.
Know What Type of Coverage You Need
When purchasing a new homeowner's insurance policy, it is very important to buy one that provides adequate coverage. You may want to consider carefully reviewing your current policy to get a better idea of what type of coverage you currently have, your deductible amount, and any exclusions to your policy. This information will help ensure that your new homeowner's insurance policy provides all of the coverage that you need.
Shop Around
If you're going to switch to a new insurance company for your homeowner's insurance policy, it is in your best interest to shop around. In this day and age, it is easy to get quotes online, so take advantage of that fact and get several different price quotes. Make sure that you get quotes for the exact same type of coverage from each company, so it will be easier to compare the quotes that you receive so you can determine which company offers the best value.
Purchase a New Policy Before Canceling Your Old One
Always make sure that your new homeowner's insurance policy has been purchased and is valid before you cancel your old policy. Failing to do so can lead to problems, especially if your home is damaged or burglarized when you don't have any coverage. Buying a new homeowner's insurance policy is relatively easy, so it shouldn't be a problem to buy your new policy before canceling the old one.
Contact Your Mortgage Company
In most cases, the price of homeowner's insurance is included in a homeowner's mortgage payment. The mortgage company will place a portion of each payment into an escrow account, and that money is used to pay real estate taxes and homeowner's insurance premiums. If you buy a new homeowner's insurance policy, do not forget to contact your mortgage company. You need to let them know about the change so that they can start sending payments to your new insurance company.
For more information, contact a company like Crowel Agency, Inc.
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