RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

How Your Homeowners Insurance Needs May Change After You Pay Off Your Mortgage

Home CRISIS-Friendly
October 18, 2021
Reading Time: 2 mins read
1
How Your Homeowners Insurance Needs May Change After You Pay Off Your Mortgage

Paying off your mortgage is a milestone that can take decades to reach. Once you’re free from the burden of monthly mortgage payments, you will still have to cover some home-related expenses. 

Your mortgage lender requires you to have homeowners insurance. Even though you don’t have to keep your coverage once you’ve paid off your mortgage, it’s a good idea to maintain a homeowners insurance policy. It will protect you if your house gets damaged or destroyed by a covered peril, if you’re a victim of theft or vandalism, or if someone gets injured on your property. 

Without homeowners insurance coverage, you will have to foot the bill for those types of losses yourself. If your house gets destroyed by a fire or a storm, all the equity that you worked so hard to build will be gone.

Notify Your Insurance Company That You’ve Paid Off Your Mortgage
Homeowners typically pay their lender one monthly fee that includes separate amounts for their mortgage, homeowners insurance, and property taxes. The lender puts money for insurance and taxes into an escrow account and pays the appropriate party at regular intervals. 

After you pay off your mortgage, you’ll be responsible for taking care of your insurance and tax bills yourself. Get in touch with your homeowners insurance company and let them know that you’ve finished paying off your home loan so you can make other payment arrangements. You may want to have bills sent to you each month so you can pay them by check, or you may prefer to set up autopay.

Make sure that your homeowners insurance company removes your lender’s name from your policy. When you had a mortgage, the lender was entitled to payment if you filed a claim. Now that the mortgage is paid off, your lender won’t be entitled to any funds if you receive an insurance payout, but the insurer will only remove the lender’s name if you specifically request that.

Review Your Coverage
You should periodically go over your homeowners insurance policy to make sure that it still suits your needs and budget. Compare the amount of dwelling coverage you have to the approximate amount it would cost to rebuild your house, given current costs for materials and labor in your area. Review your personal property coverage limit and figure out if it’s in line with the value of all your current belongings. Ask yourself if your liability limits are high enough to protect you from financial ruin if someone gets severely injured on your property and sues you. Your insurance agent can give you advice on those matters.

It’s also a good idea to regularly shop around and compare rates from different insurance companies. Even if the company you’re with now was the cheapest in the past, that may no longer be the case. You may be able to save money by bundling two or more types of insurance through a single carrier, raising your deductible or getting discounts.

ShareTweetShare
Paige Brown

Paige Brown

As Managing Editor, Social Media & Blog, Paige oversees RISMedia’s social media editorial and creative strategy, as well as managing content for the Housecall Blog, ACESocial and other editorial projects. She also helps develop marketing materials, email campaigns and articles for Real Estate magazine. Paige graduated from Central Connecticut State University with a B.A. in Journalism and Public Relations.

Related Posts

CRISIS-Friendly

How to Take Advantage of Fall Leaves

September 19, 2023
How to Take Advantage of Fall Leaves
CRISIS-Friendly

How to Take Advantage of Fall Leaves

September 19, 2023
CRISIS-Friendly

Should You Get Rid of Your Carpets and Replace Them With Hardwood?

September 19, 2023
Should You Get Rid of Your Carpets and Replace Them With Hardwood?
CRISIS-Friendly

Should You Get Rid of Your Carpets and Replace Them With Hardwood?

September 19, 2023
Items to Avoid Storing in a Garage
CRISIS-Friendly

Items to Avoid Storing in a Garage

September 14, 2023
Fall Home Maintenance Guide
CRISIS-Friendly

Fall Home Maintenance Guide

September 14, 2023

Comments 1

  1. Tex Hooper says:
    2 years ago

    I like your insurance tips. I need to get a better policy. I need more coverage.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

The All-Cash Offer: Still a Home-Buying Slam-Dunk Strategy?

Buying a house for cash, meaning no mortgage, can seem like the most strategically savvy and best way to gain an accepted offer. But there are subtle pros and cons to such a maneuver, more so for the buyer, but also for the seller. Read more.

Business Tip of the Day provided by

Recent Posts

  • Inside Real Estate Furthers Integration with BrokerMint
  • Generating Measurable ROI
  • 4 Factors Driving the Growing Demand for Eco-Savvy Agents

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X