My is paid directly from my mortgage company and the company doesn’t let me know when They raise the until a month later after the policy is paid in full. How many days do I have if I decide to cancel the policy and find another company?

 

  • MSAD 2:01 pm on August 4, 2010

    As soon as you have a new policy in place.

    Once the new policy is in place, contact your current homeowners insurance agent and cancel the policy. It would probably be best to go sit down with your agent so you can sign any needed paperwork.

  • JIM 2:01 pm on August 4, 2010

    Ask your mortgage provider

  • Ryan M 2:01 pm on August 4, 2010

    That is a question that ONLY your insurance company and your lender can answer. There is no universal answer that applies to every single situation.

  • Judy 2:01 pm on August 4, 2010

    You can cancel any time, not just on or near the renewal date, but you need to have a new policy in place first. Give the info on the new policy to your lender.

    But by the way,. it’s standard for homeowners insurance cost to increase every year. Your coverage probably increases also. Notification of changes is when the bill comes, and you didn’t see that, your lender did.

  • Ginger 2:01 pm on August 4, 2010

    First, most insurance companies in most states must notify the policyowner and the mortgage company at the same time whenever their renewal is issued and billed. I’m surprised you didn’t receive the notice at the same time the lender did.

    You may cancel your policy at any time. The company may charge a short rate or pro rate in the event you do and it will take a little time to catch up with your escrow.

    You have the right to carry insurance with any company you want to and you aren’t obligated by your lender to carry a certain company’s policy. Make sure you have established another policy BEFORE you cancel the one you have.

  • mbrcatz 2:01 pm on August 4, 2010

    YOU should be receiving a copy of the renewal policy, every time it renews.

    You can cancel coverage at ANY TIME, but in some states, you might pay a short rate penalty, or a cancellation fee, or both. When you’re shopping for coverage, your NEW agent can arrange for cancellation of your OLD policy, so that there’s no lapse in coverage, and no overlap of coverage.

    There’s no "free look period" on a homeowners policy, but in some states, you can cancel with no penalty the first 30 days. Your agent should be able to tell you if your state is "that way".

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