When To Pay Homeowners Insurance?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaHomeowners policies are traditionally paid directly by the insured, or by the mortgage company from impounds collected each month from the mortgagee as a part of the monthly payment. The premium itself is due on the first day of the policy, regardless of who is responsible to pay it. When a policy is not paid promptly, the policy can be cancelled and a replacement policy might require a new underwriting procedure to assume coverage.Answered on February 25, 2014flag this answer.png)
1844 POINTSview profileDavid W. ClausenChief Executive Officer, Coastal Homeowners Insurance Solutions, Rocky Point, NY 11778Many banks will require that you pay the first years homeowners insurance in full at closing. Once you close on the home they will collect the estimated amount of monthly insurance in your escrow account to be dispersed the following year. Similar to your property taxes. If you aren't using an escrow account the insurance company or agent will have different billing options for you. Our office recommends using an automatic EFT bill plan. This will help avoid the chance that you miss a bill and have your insurance cancel. Hope this answer helpsAnswered on September 21, 2015flag this answer
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