When shopping for home insurance, you find the policy that fits your needs and budget. Unlike shopping for other things where you can see how much it is right away while shopping, insurance is different. There isn’t a standard sticker price because there are different policy options for your manufactured or modular home coverage. Some of these options affect how much your homeowner’s insurance premium will be.
What is an Insurance Premium Payment?
Across different types of insurance policies, from car insurance to life insurance, an insurance premium is the price a policy holder pays for coverage. A premium payment can be for the full amount, or broken up into smaller payments and spread out over time.
Home Insurance Payment Options at HomeFirst®
At HomeFirst® Agency, your insurance premium payments can be made in a variety of ways. Your lender may allow or require your homeowner's insurance be escrowed, or paid through payment plans. If your premium is not escrowed through your lender, we offer a payment plan of our own that consists of either 1, 2, 4, 6 or 8 payments a year.
How is Homeowner's Insurance Paid at HomeFirst®?
You can make online payments, automated payments by phone, mail your payments to our office or have automatic billing through an escrow account. Check with your lender to see if they offer the option to escrow your insurance into your monthly mortgage payment.
"Do I Have to Pay Homeowner's Insurance Through Escrow?"
It depends on what your lender requires. Some lenders may require homeowner’s insurance to be escrowed. If a home insurance is escrowed, that is where the lender will:
Take the insurance premium amount and split the payments up into a monthly amount
That monthly insurance payment amount is then added to the monthly mortgage payment amount
When it comes time for your insurance to be paid, your lender will pay the insurance company directly from the escrow account you have been paying into each month
So basically, you are paying your mortgage and your homeowner’s insurance in one combined monthly payment.
Choosing the Best Homeowner's Insurance Payment Option for You
With HomeFirst®, you also have the option to pay your premium online, make an automated payment by phone or mail a check to our office. However, as you determine the best option for you, consider the following.
If you have the tendency to miss regular bill payments and don’t want late fees, an automatic option, such as escrow if available, may be a good choice for you. Check with your lender to see if escrow is required or available.
If you like to keep a written record of your balances and manage your checkbook in a hands-on manner, mailing payments to our office may be best for you.
If you prefer to form your personal budget a certain way such as keeping a quarterly budget for your family, paying in a unique installment schedule may be the best method for you. This can be done online, automated by phone or through the mail.
What Happens if I Don't Pay My Homeowner's Insurance?
If your homeowner’s premium becomes past due, depending on the laws in your state, your policy may be cancelled. If that happens, just give us a call and we will see if we can reinstate the policy, meaning we restore the policy you had, or get you a new policy quote.
So, Who Should I Talk to About Home Insurance Options and Payment Plans?
Whether you have questions about homeowner’s insurance payment options or coverage, friendly representatives are available to talk with you about what sort of homeowner's insurance plans HomeFirst® offers and your questions about insurance premiums. For any questions regarding escrow, contact your home loan lender.
Know ahead of time that your homeowner's insurance premium cost will depend on the type of coverage you choose, but the frequency of your payment can be flexible.
Start with Your Monthly Budget
As you consider your manufactured and modular homeowner's insurance options, you can start figuring out the best homeowner's insurance payment plan for you by organizing your personal budget and finances. To jumpstart your personal budget strategy, use our free budget sheet to organize and track your current expenses.