Does homeowners insurance automatically renew?

As a general rule, Ohio homeowners insurance does automatically renew. BUT…….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 most attention to.

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.

Exception 1- your lender has changed

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!

What you need to know:

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. They can also forward directly to us with their requirements. We can update the information and send what they need to get the policy up to date and paid.

Homeowners insurance automatic renewal Example 2

You pay your Ohio 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. HOWEVER, verify with your homeowners insurance company/agent if this is indeed the case, so there are no surprises.

Exception 2- automatic bank account info has 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.

What you need to know:

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).

BIG Exception 3- Non-renewal

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 (makes sense right)? Coverage will end as of the date on the Non-renewal notice. You’ll have to go find new insurance. 

Keep in mind I’m talking about Ohio here. In the situation where your homeowners insurance is with a non-standard carrier due to condition of house, vacancy or depending on the laws of your state, 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.

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

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Are you ready to save time, aggravation, and money? The team at Alan Galvez Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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