If I’m escrowing my home insurance, how do I cancel mid-term?

Having home insurance is necessary to ensure the protection of your home. If you are ever in a position where you feel the need to switch your insurance company for one reason or another and have your payments deducted from an escrow account, there are certain steps you have to take to make sure your insurance does not lapse during the process. Quite a few people think escrowing your insurance payments will cause problems if you ever need to switch. This is not true if you know what you are doing.

Can I cancel mid-term?

As a homeowner, yes you can. First, contact your mortgage lender to see if they can make payment to the new insurer, refunding the old insurer to balance out your account. Depending on the circumstances, you may be in the position where you will have to make that payment to the new insurer yourself and use the refund to replenish your account.

Getting the information from your home insurance company directly on how to complete the process will help. If you choose to have your mortgage company make your payments, escrowing your funds is a necessity and not an option. Take the time to speak to an independent insurance agent like Don Allred Insurance to ensure there are no missteps which could leave you financially liable. An independent agent can also help you find an insurance company that will meet all your needs to prevent having to switch carriers again.

For the best information that will help you make an informed decision, go to your trusted independent agent. Contact an associate at Don Allred Insurance today to get the results you need!