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House and carApart from getting all the particulars about St George home insurance coverage, there are also some other kinds of details that property owners will want to talk about when they set up these policies. One issue is how the home insurance policy is paid and how the exact amounts needed to maintain coverage are channeled into the insurer’s accounts over time. Being confident about handling any possible changes or issues has a lot to do with knowing how a particular mortgage works, and how home insurance is factored in.

Avoid Double Billing and Other Problems

Some of the simplest problems around home insurance payments happen when property owners don’t understand whether they are responsible to send annual or periodic payments, or whether the money comes out of something called an escrow. The escrow is an amount of money set up in the mortgage contract that will cover extras like home insurance and property taxes.

What can happen is that insurers will get money every month toward home insurance policies, but a letter will be sent to homeowners asking them to pay the full premium. If homeowners aren’t sure about their escrow status, this can be extremely confusing, and some might even double-pay for their home insurance coverage.  It is important to know whether an escrow is set up, and how it is working in relation to the cost of home coverage.

Changes to the Escrow - and the Mortgage

Another common problem is that homeowners will see their mortgage payments suddenly increase due to changes in the escrow. Many of these changes have to do with property tax rates, but others have to do with changes to the homeowner’s insurance policy. Insurance companies may not always send clear and transparent letters about changing costs, and property owners might not see them until they come up as increased mortgage payment amounts.

To avoid getting taken by surprise, property owners should keep tabs on current costs for both property tax and homeowners insurance.  This will help owners understand how an escrow shortage can require more money to be put into the mortgage account every month. Usually, all this takes is a quick phone call to the insurer, but it’s important for those who are paying home insurance policies to be sure they’re not getting taken advantage of, and to fully understand the reasons why they may pay more over time.

Solving these two issues goes a long way towards anticipating all of the costs of a home insurance policy, keeping current on premiums and maintaining a good relationship with the insurance company. Call Key City Insurance at 435-656-8100 to learn more about the ins and outs of maintaining home insurance.

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CALIFORNIA Key City Insurance Victorville Office
12370 Hesperia Road Suite 9
Victorville, CA 92395
(760) 241-7375

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St George Office
393 E. Riverside Drive Suite 203
St George, UT 84790
(435) 656-8100
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