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Are homeowners renewed automatically?

As a general rule, Ohio homeowners insurance is automatically renewed. MEN ……. There are some exceptions. Read on for two common automatic renewal examples and three exceptions. NOTE : the exceptions are the ones you want to pay the most attention to.

Insurance of homeowners automatically Example 1

If you own your home and your insurance is paid by deposit, then when the mortgage lender is billed for the renewal and they pay it, the policy is renewed.

Exception 1- your lender has changed

The lender has changed at some point during the insurance period, but that information has NOT been communicated to the insurance company. The new lender does not always communicate that information, so we are basically unclear that a change has taken place. If you do not tell us, it did not happen.

And then the invoice is sent to the wrong lender, they do not pay it (because it is not their loan anymore), and you get a big fat cancellation message. The worst case scenario ̵

1; you ignore the notice of termination and the policy is terminated. YIKES!

What you need to know:

If your lender changes during your insurance, it is YOUR responsibility to notify your insurance company / agent. We only need the new mortgage clause, postal address for insurance verification (NOT where your payment is sent – it is usually another address for insurance verification) and loan number, if applicable. If you are unsure, contact the lender and ask for this information. They are happy to tell. They can also forward directly to us with their requirements. We can update the information and send what they need to get the policy updated and paid for.

Automatic Homeowner Insurance Renewal Example 2

You pay your Ohio homeowners insurance premium through automatic checkout or automatic credit / debit card payments. MOST insurance companies are set up so that a renewal policy continues with the same payment plan unless it is changed. However, check with your homeowners insurance company / agent if this is really the case, so there are no surprises.

Exception 2- automatic bank account information has changed

IF your bank account or credit card information has changed, then your renewal payment will fail. You will need to update your payment information when you receive another bank account or credit card. It is a 5 minute solution that saves lots of trouble.

What you need to know:

Contact your agent to make the change, or carrier if you have no agent. Otherwise, you will be charged return check fees, causing you HUGE headaches and may even be removed from the automatic payment option for a period of time. Worst case – the policy is canceled! This is usually as simple as updating the information and signing a new authorization form (which is usually done via an electronic signature to make things even easier).

BIG Exception 3- Non-renewal

If your company chooses NOT to -Renew your policy (and this can happen for a number of reasons), then your policy will NOT be renewed (meaningfully)? Coverage will cease from the date of the non-renewal notice. You need to find a new insurance policy.

Remember I'm talking about Ohio here. In the situation where your homeowners insurance is with a non-standard carrier due to the condition of the house, vacancy or depending on the laws of your state, the process can be very different. You may need to fill out a new application, new payment forms or a variety of other documents. My advice? When in doubt, ask your agent what the renewal process is like and what to expect.

An experienced Ohio homeowners insurance agent is here to help you if you encounter this situation! Call us at (937) 592-4871 or fill out the form below to review your policies.

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