I Am Currently Insured with Another Company for My Home in Laurel, Maryland and It Is Paid Throughout Our Escrow, But I Want to Switch to Other Insurance in MD. What Do I Need To Do?

Individuals with Laurel, Maryland, Washington, including the District of Columbia have numerous options when it comes to affordable, quality insurance policies. Individuals who wish to switch policies can easily work with an independent agent to determine which new policy or provider is ideal for their specific needs. Then, he or she can make arrangements to switch plans with the escrow provider.

In many situations, escrow is established by your lending agent. Most home loans require full coverage on your own. To help protect the lender, it will often require or provide an escrow service. In this service, the consumer pays a bit more than his or her monthly loan payment to the lender each month. The funds collect in an escrow account and then are paid out to the insurance provider when the bill is due.

To make changes to your insured home policy to the other company, the first step is to find the new insurance policy for your home. It must meet all requirements established by your lender. Once you have the new policy, contact your escrow company or mortgage lender and inform them of the change. In some cases, when you are currently paid up to date, you may need to switch the policy with the original insurance company as well (simply by informing that company that you are switching to a new one.)

The escrow company will then begin collecting, holding, and paying the new company when the debt comes due. It is advisable not to make this change in the days or week leading up to a payment if at all possible. In that case, you may need to request a refund for any insurance paid in advance to the previous lender. Again, the insurance companies and your escrow company can help you with this process.