 Sam
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Joined: 21 May 2005
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Location: CALIFORNIA
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 Posted: Tue Mar 30, 2004 5:58 pm Post subject: What if I want to change insurance companies? |
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Insurance companies can be changed at any time, but the procedure will depend on the status of your current policy. You should follow the rules given below if you pay for insurance through an escrow account:
- Change company when current policy is at mid-term:
You are required to pay the premium for the new policy if the lender has already paid the premium for your current policy through escrow account. You must send a copy of the new policy to the lender along with a paid receipt, cancel the old insurance policy and request a refund of any unused premium.
- Change company when current policy is under renewal:
In this case, the lender will pay the premium for the new policy by using funds from your escrow account. Make sure that your agent sends the lender the premium billing for the new policy before your old policy expires.
In both cases, you must take care that the new policy becomes effective on the same day when the old policy is cancelled. This will eliminate any possible lapse in coverage.
When your premiums are paid through escrow account, you should contact the lender's Customer Service department for necessary instructions. If you want to change during the renewal period, you should inform the Department at least a month before the renewal. |
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