Why You Shouldn’t Roll-In Your Homeowners Insurance in with Your Mortgage Payment
Many homeowners roll their homeowners’ insurance payments and property tax payments into their mortgage payments, Initially, this can make sense. It puts all the major homeowner expenses in one payment and it makes paying bills a bit more convenient. Mortgage companies love it because it helps assure them the mortgage holder is keeping up with property taxes and is maintaining insurance on the home. But there are reasons those payments should be kept separate, especially when it comes to homeowners insurance.
First of all, you will know exactly how much you are paying for coverage on your home. If you are paying for insurance as part of your overall combined payment, the amount you are paying can easily get lost and become an after-thought. You soon may be overpaying for coverage.
Another reason to pay for your homeowners’ insurance as a separate payment is you will more likely become aware of when the insurance comes up for renewal. This can be a helpful prompt to compare rates occasionally. This can help assure you are always getting the best rates and coverage.
It is far too easy to forget what coverage you even have when payments are made as part of a bundle. Mortgage companies and insurance companies may appreciate this but it is not always in the best interest of the policyholder.
If you are currently paying for your homeowners’ insurance policy as part of your tax and mortgage payments, consider taking steps to pay for it individually. You will become more aware of the costs and hopefully take the steps necessary to make sure you are getting the best coverage for what you are paying. It is also a terrific opportunity to review your coverage to make sure it is sufficient for today’s circumstances.
We invite you to contact one of our independent agents for a homeowners’ insurance review. There is no cost or obligation, and they can help you better understand your current coverage and the actual cost you are paying. If you choose, they can explore coverage from other companies to see if you qualify for improved coverage at the same or even a lower price.
Bundling your homeowners’ insurance with your property taxes and mortgage payments may be convenient, but it may be costing you. Contact us and see how we can help.