Homeowners Question

Clozer · Post by **Clozer** » Fri Oct 22, 2004 5:04 pm

Okay, this may sound stupid to you veterans. Can you switch a clients home owners insurance or auto for that fact, before it's up for renewal? If so how do you go about switch the escrow payment for home owners insurance? Thanks

clozer

Clozer · Post by **Clozer** » Thu Oct 28, 2004 9:57 pm

No one knows the answer? It's a simple newbie question. Please help

goredsox · Post by **goredsox** » Fri Oct 29, 2004 7:51 am

Of course you can switch the policies before the renewal. The customer should call their bank and tell them they will be switching insurance companies and then have the bank call you. Cancel the existing policy, more than likely the money will be returned to the customer, and have the customer and their bank decide how the new policy is going to be paid. Fax evidence of insurance to the bank with a copy of the bill. You really shouldn't have a problem with this procedure.

Cash · Post by **Cash** » Fri Oct 29, 2004 10:40 am

Hot tip,
Have the client pay a minimum downpayment on the new policy. This will give you time to work out the money details with the impound account. This works like a champ and everyone is happy.

rhare · Post by **rhare** » Fri Oct 29, 2004 10:45 am

When I handled Personal Lines (for 17 yrs) I rewrote HO policies mid-term many times. My personal handling would NOT depend on the bank to call agent. I would handle transaction more hands on. Ask your customer for a copy of the backside of their mortgage statement where you will find all the bank service ph#s, addresses, etc. You should have the loan# from the current escrow data. Call the escrow dept yourself (they have service reps just for insurance agents), explain what you're doing, get the person's name and fax#, and ask them how client is to return the cancel refund to them. Fax over proof of cancellation (signed LPR) from the insured and copy of new binder. 9 out of 10 insurers return premium to insured, as it was their money, not bank money. Give your insured the escrow bank instructions on where to return the cancellation to escrow account - most likely a different address than mortgage payment. If the refund does not make it back to escrow before the new HO bill arrives, the bank will still pay the new premium. If your insured pockets the money in lieu of sending to escrow, the mortgage bank will notify him/her of the escrow shortage and can choose to handle a couple different ways. Insureds are really clueless how all this works. Asking them or the bank rep to intiate calls or follow ups is not pro-active; you're only setting yourelf up for a potential error and the client will say "I shouldn't have done this...not worth it...why did I do this..."

Newbie · Post by **Newbie** » Fri Oct 29, 2004 11:12 am

I am also new to Personal Lines. I have switched policies midterm. I also asked for minimum down so that they have time to get the refund from one company.