| Many home loans require that the borrower maintain | | | | dwelling coverage should be based upon the current |
| an impound account that is associated with the loan. | | | | rebuild cost of the home. Over time rebuild cost will |
| In most cases this account is used to renew the | | | | change with inflation, availability of materials, and |
| homeowners insurance associated with the property. | | | | other economic factors. If these policies were to |
| These payments for the new business and renewal | | | | continue to renew for an extended period of time |
| homeowner's insurance policies are mailed out directly | | | | without any adjustments made to them it is possible |
| from the insurance department that manages the | | | | that the homeowner could be significantly under |
| account. Often times the homeowner does not need | | | | insured. |
| to verify the amount paid or coverage on the | | | | Many homeowners are reluctant to change |
| insurance. | | | | homeowners insurance companies when the policy is |
| With these payments being made without any effort | | | | billed to the impound account. They often assume |
| be the insured, many homeowners are left with | | | | that it would be a challenge to change companies. |
| possible exposure regarding the coverage listed on | | | | This is not the case. If a homeowner were to |
| the insurance policy. In addition, the insured will often | | | | change insurance companies and wanted the new |
| be paying significantly more due to not checking the | | | | homeowners insurance company to bill the lender |
| limits and premium on the policy. If the homeowner | | | | directly it will often only take a single phone call from |
| were to request quotes for the policies they would | | | | the insured to the lender to authorize the change in |
| often times find that they can find a more | | | | insurance companies. Homeowners should not |
| comprehensive package at a competitive rate. | | | | hesitate t shop their home insurance simply because |
| Consumer should often check the coverage that is | | | | the payment is being made automatically. |
| listed on their homeowner's insurance policy. The | | | | |