Switching Homeowners Insurance

Have a CEFCU Home Loan and the homeowners insurance is paid through your escrow account? If you are changing insurance companies, let us know — before the due date if possible — so we don’t pay what will be your former insurance company.

Usually CEFCU receives homeowners insurance renewal notices about four weeks before policies expire. Your insurance renewal premium is generally debited from your escrow account about 21 days before the due date so the payment gets to your insurance company on time.

Escrow Account

Your escrow account is set up to pay just one insurance premium a year; so if your former insurance company is paid, plus the new insurance company is paid from your escrow account, there will be an escrow shortage.

When you cancel your insurance policy, you should receive a check for a partial refund. We recommend you deposit any refund from your former insurance company into your escrow account to help make up the deficit. That’s also a good time to request your escrow be re-projected based on the new insurance premium.

To reduce the impact on your escrow account, contact us when you are considering switching insurance companies. Partnering with CEFCU early can simplify the process and make sure:

• The insurance payment does not go to the wrong company,
• Your escrow account isn’t depleted more than necessary,
• The new premium is not delayed.

For more information or to let us know you are changing insurance companies, email us or call 1.800.542.3328, ext. 33424.