You Gotta Shop Around
If you’re close to pulling the trigger on refinancing your home, it wouldn’t be a bad idea to shop around for your insurance premium. A common mistake homeowners make is keeping the same insurance company due to loyalty. Hundreds, even thousands, of dollars can be saved over the life of the loan by just having a chat with your agent to make sure you have proper coverage and you don’t have more than you need. Especially in cases where you’ve noticed an increase in your premium year after year.
Try speaking with an agency that writes for several companies. These agents can sell policies from several different companies and can help you find the best package that fits both your needs and the requirements of your lender.
If you prefer to stay with your current agent, there’s nothing wrong with that at all. In fact, we like your loyalty. However, this doesn’t mean you should pay more. Ring your agent and ask if there’s anything they can do to help lower your insurance premium. Are there options to bundle several policies? Maybe your agent has your house valued 20-30% higher than the actual value. Hey! There’s no harm in asking, right?
Remember that refinancing your home means paying off your current mortgage and replacing it with a new one. You’ll have a new escrow account, most likely a new servicer, and new payment. If you’ve been thinking of switching your insurance agent or making adjustments to your current plan, make sure you’re taking the time to review your options.