As a general rule, Ohio homeowners insurance does automatically renew. BUT, like with many things, there are SOME exceptions. Read on for the most common examples when homeowners insurance automatically renews and a few exceptions to those rules…..
Homeowners insurance automatic renewal Example 1- If you own your home and your insurance is paid via escrow, then when the mortgage lender is invoiced for the renewal and they pay it, the policy renews.
The lender has changed sometime during the policy period, but that information has NOT been communicated to the insurance company. The new lender does not always communicate that information so we’re basically clueless that a change has happened. If you don’t tell us, then it didn’t happen. And then the invoice is sent to the wrong lender, they don’t pay it (because it’s not their loan anymore), and you get a big fat cancellation notice. Worst case scenario- you ignore the cancellation notice and the policy cancels. YIKES!
Moral of the story- if your lender changes during the course of your policy, it is YOUR responsibility to let your insurance company/agent know. We just need the new mortgagee clause, mailing address for insurance verification (NOT where your payment is sent- it’s usually a different address for insurance verification) and loan number, if applicable. When in doubt, contact the lender and ask for this information. They’re happy to tell you. We can update the information and a new invoice can be sent to the new lender.
You can also read our article Changing homeowners insurance with escrow- how does that work? to avoid this situation.
Homeowners insurance automatic renewal Example 2- You pay your homeowners insurance premium via automatic check withdrawal or automatic credit/debit card payments. MOST insurance companies are set up so that a renewal policy continues on the same payment plan unless changed.
IF your bank account or credit card information has changed, then your renewal payment will fail. You need to update your payment information whenever you get a different bank account or credit card. It’s a 5 minute fix that will save you a ton of problems.
Moral of the story- Contact your agent to make the change, or carrier if you don’t have an agent. Otherwise, you’ll get charged return check fees, cause yourself a HUGE headache, and may even be removed from the automatic payment option for a period of time. Worst case scenario- the policy cancels! It’s usually just as simple as updating the information and signing a new authorization form (which is usually via an electronic signature to make things even easier).
If your company is choosing to NON-Renew your policy (and this can happen for a number of reasons), then your policy will NOT renew. Coverage will end as of the date on the Non-renewal notice. You'll have to go find new insurance.
Here’s the typical renewal process for an Ohio homeowners insurance policy
- Renewal declarations is generated.
- Invoice is generated and mailed to insured.
- If payment isn’t made by the due date, then eventually a cancellation notice will be issued giving a final date for payment or the policy will cancel. (Keep in mind, the insurance company can charge for the time period between the due date and the cancellation date. This is called earned premium. Read our article Why Letting a Policy Cancel for Non-Payment Will Cost You BIG TIME to avoid this situation).
So in this case, the renewal is dependent on the payment of the renewal premium- which is actually how most standard insurance policies operate.
In the situation where your homeowners insurance is with a non-standard carrier due to condition of house, vacancy or some other reason, the process could be very different. You may have to complete 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 you can expect.
We provide answers to your insurance questions and do our best to make insurance easier and less complicated. If you'd like to experience this for yourself call us, or request your homeowners quote today!