Recently, we were billed for the renewal of our homeowner’s insurance policy. We looked at the bill and felt it might be high. This prompted us to get a quote from another insurance company and, to our surprise; the quote was less than half of our current policy (with the same parameters). We let our current agent know we were thinking about making a change. We had been with our current agency for years and thought we should let them know we were considering a change in agencies and carriers. This notification gave our agent the ability to re-price our insurance policies and quote us a very similar price to their competitors. Even though our current insurance agent’s quote was very competitive it was hard to get around the fact that
they may have been over charging us for years. It prompted us to make a change in our agent and insurance company.
Most homeowners do not think about their bill for homeowners insurance each year. This is because a large percentage of lenders required an impound account for insurance, taxes, and property mortgage insurance (PMI) to make sure leans do not occur for these items and jeopardize the first lean position the lender’s loan enjoys. After the initial purchase homeowners tend to forget about their homeowner’s insurance because it is paid out of their impound account by the trustee. A lot of times homeowners only see a small change in their monthly mortgage payment each year as their homeowners insurance and taxes are adjusted year after year.
Is our case an isolated one? If homeowners do not get quotes and check the cost of their policies they end up paying more than they should for the same insurance. Please check your insurance policy pricing. Get a quote and see if your current policy pricing is competitive. Even if you have an impound account you can change your policy. Please feel to contact us with any questions.