Why You Shouldn’t Roll-In Your Homeowners Insurance in with Your Mortgage Payment

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.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

“Do Women Live Longer Than Men?” and Answers to other Other Life Insurance Questions

Interesting Answers to Some Common Life Insurance Questions

How States Determine If You Have Car Insurance

“Trust But Verify” Is the Attitude Most States Take

Are You Asking the Right Questions About Homeowners Insurance?

The Right Answers Often Begin with the Right Questions

Smartphones: How and How Much We Use Them May Surprise You

See How National & Worldwide Trends Compare with Yours

Own a Rental? You May Need Business Insurance

Do You Have the Appropriate Insurance to Cover Your Investment Property?

What is Decreasing Term Life Insurance?

Is Decreasing term Insurance Right For You? Would You Know?

How States Determine If You Have Car Insurance

“Trust But Verify” Is the Attitude Most States Take

One of the Best Buys in Loss Prevention: Renters Insurance

Take Advantage of Affordable Renters Insurance When Leasing

Seven Steps to a Better Night’s Sleep

When Counting Sheep Won’t Do the Trick.

Checking for Financial “Leaks” at Your Business

Like a Dripping Faucet of Money, Leaks May Be Holding Your Business Back

Leave a Comment