Why Home Insurance in Jacksonville is Paid Annually

Why Home Insurance in Jacksonville is Paid Annually

Many insurance premiums are paid monthly. You probably pay your car insurance monthly, renters insurance monthly, and various other things. However, with Jacksonville home insurance, it is paid annually.

It's Part of Your Escrow

When you have a mortgage in place, you pay an escrow. This is an amount above and beyond your mortgage payment to cover your home insurance as well as property taxes. This means that the financial responsibility is still yours, but you aren’t the one responsible for cutting the check to insurance on a monthly or annual basis.

Your mortgage company will show you when they pay the home insurance for you. It’s made in a single payment to the insurance company for the year. However, you are likely still paying it monthly because you pay your mortgage monthly.

Your Mortgage Company Deals with the Payments

Your mortgage company is the one that deals with all of the payments. They have you pay your escrow monthly. The money goes into a separate account so they can take care of the needed payments. As you pay monthly, it all adds up and they can then cut a check for the full annual amount of insurance.

The reason home insurance is paid annually is that it’s cheaper to do so. You might not realize it, but you’re actually getting a discount when the mortgage company cuts a single check at the end of every year.

You Control the Cost

Even though you probably aren't the one responsible for cutting the check to the insurance company, you still control the cost. It is up to you what insurance company you use to get your home insurance policy. You can also control the cost further by identifying the coverage that you want.

If at any time you want to change your home insurance, you have the right to do so. Once you make the changes, you need to submit the new information to your mortgage company. The information you provide should include the coverage as well as all of the information about the insurance company. In some instances, your escrow payment would be adjusted as well. If you save a significant amount on the annual premium, you might find that your escrow payment drops considerably as well.

Understanding home insurance requirements can be overwhelming at times. You don’t have to go through the entire process on your own. If you have questions about escrow, home insurance in Jacksonville, or anything else, you can rely on an independent insurance agent. Agents don’t work with one specific company. Instead, they work with an entire portfolio of company in order to provide you with options. They will get quotes on your behalf and answer questions that you have. It makes it easier for you to get the coverage and know that your home insurance is being taken care of on an annual basis.