Why Paying Home Insurance with Your Tax and Mortgage Payment May Not Be a Good Idea
If you pay your home insurance premiums through an escrow account that includes your property taxes and mortgage payment, you are not alone. In fact, far from it. It is estimated that 80% of homeowners take care of their property insurance payments in this manner. But is it a good idea?
It certainly is for mortgage holders, the local taxing authority, and insurance companies, but what about you?
Combining your home insurance with taxes and mortgage payments in an escrow account is convenient, for sure. But there can be issues with this approach. It can disconnect you from just how much you are paying for property taxes. It can also not provide an accurate feeling of what your mortgage is costing you. But it can cause even more issues when it comes to your home insurance.
When you pay your home insurance through a combined escrow account with taxes and your mortgage, it can be easy to forget about this critical coverage. You may ignore getting your home insurance policy reviewed, and you may miss out on coverage or find yourself paying too much. It can be easy to forget what your deductible is, who your insurance company is, and even how much you are paying.
Have you ever signed up for a subscription or “free trial” that you forgot about and paid for longer than you should have? A similar issue can occur with home insurance.
How do you fix it? Contact us for a no-obligation home insurance review. We can answer all of your questions about your homeowners’ insurance. Most importantly, you can get a free quote on an updated policy to suit your needs. You may appreciate the fact that you can pay for your home insurance premiums separately or decide to pay them through escrow. Either way, you can have confidence that your policy is updated and suits your current needs.
As independent home insurance agents, we are capable of reviewing home insurance policies from any company. We can shop through our network of insurance companies to provide the best value for your situation.
When was the last time you had your home insurance policy revived? If it has been more than two years, we invite you to reach out to us. This is particularly important if you pay your home insurance with property taxes and your mortgage. We look forward to assisting you.