Have you ever wondered what happens to home insurance after a mortgage is paid? If so, you aren’t the only one. Here’s the inside scoop from Oliver Insurance, serving Canby, OR.
Home Insurance After a Mortgage Is Paid
If you are on the cusp of paying off your mortgage or have already paid it off, congratulations. You own your home outright and all that remains is the annual property tax cost. The home insurance ball is now in your court. Your mortgage lender previously mandated insurance up until the mortgage was paid. Take the proper steps with a proactive approach and you’ll ensure your prized home is properly covered.
Most homeowners opt for policy continuation. This approach means the home insurance policy remains intact. Keep in mind, the insurance policy isn’t automatically canceled after the mortgage is paid. The policy remains intact if the premiums are paid. Seize the opportunity to review your coverages to guarantee the policy suits your specific needs. If necessary, adjust the policy as the lender and its nuanced requirements are now out of the picture.
Coverage reevaluation encompasses everything from the home’s current value, changes to personal property and renovations. Review these factors, crunch the numbers and you might determine you need less or possibly even more coverage. Keep in mind, there’s always the option of shopping around for a better rate based on your desired coverages.
Address the Escrow
If your mortgage had an escrow account set up to pay property taxes and insurance, you can remove it after the mortgage is paid. Budget for property taxes and home insurance premiums on your own and you’ll sidestep coverage lapses.
However, paying those premiums might not be as difficult as some insurance providers offer discounts for customers who own their homes outright, meaning those without a mortgage. Shop around for insurance and you’ll find the best deal for your needs.
Oliver Insurance Is on Your Side
Serving Canby, OR, Oliver Insurance offers affordable home insurance. If you are a homeowner or in the market for a home, contact us today for a quote.
