Perhaps the most horrible thing that can happen to a homeowner is not losing their home to storm damage or fire, but finding out their insurance has lapsed in the process. Without insurance, the damage to your home comes at your own expense, and if your home is a complete loss, then there is no way for you to replace it. Here are some helpful hints on how to protect your home and assets by preventing a lapse in homeowner's insurance.
Place Your Homeowner's Insurance into Your Escrow Account
Many mortgage lenders require borrowers to have an escrow account wherein extra payments are placed to pay for insurance and taxes. You can either do this independently of your mortgage company, or your mortgage company secures an escrow account for you with their bank. When it comes time to renew your homeowner's insurance, which is often annually, the mortgage company pays the amount in full for you, even if your escrow account with them does not have enough funds. Over time, you pay back into the escrow account, and there are no lapses in insurance.
Ask Your Insurance Agent to Set up a Reminder Call/Text
Busy lives makes for forgotten and missed payments. If your insurance agent provides reminder services, you can request that he or she call, text and/or send these reminders when your next homeowner's insurance payment is due. Most insurance agencies already send snail mail, especially when there is a change in the annual premium, but sending emails, texts, and reminder calls helps you stay focused on getting that payment in.
Set up Auto Withdrawal for Your Insurance Payments
Many insurance companies offer an auto withdrawal payment method. Even if you completely forget that your insurance payment is due, your insurance company can withdraw the amount from your checking account. It only takes a few minutes to set up this payment method, either online or with your agent, and then you have peace of mind knowing your home is covered.
Pay the Bill in Advance
Sometimes you remember that your insurance payment is coming due. Before you forget again, pay it when you remember it, even if you are paying the bill in advance of the coming due date. There are no penalties for paying your homeowner's insurance early, and it reduces the odds that you might forget again and allow the insurance to lapse. Even if you pay only part of the total insurance bill due, it should hold your insurance in place until you can pay the rest.
Contact a company like The Selzer Company to learn more about maintaining your homeowner's insurance policy.Share