We wanted to reach out with an important reminder about your homeowners insurance policy and how it can effect your monthly mortgage payment.
Each year, we review the funds in your escrow account to make sure there’s enough to cover your property taxes and homeowner’s insurance when they come due. If your insurance premium increases, it can create an escrow shortage, which may result in higher monthly payment to make up the difference.
Here is how to stay ahead of it:
- Locate your annual insurance renewal notice. Your insurance company will mail or email this to you, typically 30-45 days before your policy renews. It will show your new premium for the upcoming year.
- Compare it to last year’s premium. If the new amount is higher, that increase will reflect in your escrow requirements.
- Shop you policy if the rate has gone up significantly. Contact your current insurance provider or independent agent to see if a better rate is available. Even modest savings can help keep your escrow, and your monthly payment, stable.
- Make sure we have your current policy on life. If you switch providers or make any changes to your coverage, please send your updated declarations page to us as soon as possible so we can update our records.
- Contact us with any questions. If you received your renewal notice and want to understand how it may affect your payment, we’re happy to walk through it with you.
Being proactive about your insurance each year is one of the easiest ways to avoid surprises on your mortgage statement. We’re here to help whenever you need us.