Mortgagee clause changes, something to look out for regarding your mortgage, especially if your homeowners policy is paid through escrow.
After your closing, your mortgage company might make some changes that you will need to relay to your insurance agent. Often times mortgage companies will either sell your loan to another company or simply change the address that your insurance carrier is expected to send the bill for your homeowners policy. This is what is known as a mortgagee clause change and it is important to update your policy swiftly to avoid any hiccups in paying your insurance.
You will be notified of these changes by your mortgage company so remember to keep an eye on the mail and review all documents for accuracy. If there are any discrepancies, no matter how small, between your loan and the additional interest section of your home policy, you need to contact your agent as soon as possible. The difference can be as big as a whole new mortgage servicer, or a PO Box or zip code change. Don’t forget to review the loan number as well.
Staying on top of these often overlooked changes will allow for a seamless transition when it comes time to pay your bill.