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Home Insurance Question from Las Vegas, Nevada

Asked on 9/21/2019.   This question has received 26 views.
Should I turn over my homeowners refund check to my mortgage company?   I cancelled homeowners insurance with Allstate and switched to Geico to bundle with my auto insurance. Allstate sent a refund check and I have been told that I need to send that money on to my mortgage company.

Answer given on September 26, 2019


If your homeowner insurance premium is paid by your mortgage company, through what is called an "impound account", you should probably send any refund you received from the previous insurance company to the mortgage company. I presume they are also paying the premium to Geico on the new insurance policy.

If you pay your homeowner premium yourself, directly to the insurance company, then you do not have to send any refund to the mortgage company.  If you are not sure about the premium payments, check with the old insurance company as to how the premium was paid and who paid it. If they can't tell you, call your mortgage company and ask, or look at your mortgage payment statement. It will show if there is an impound account, and separate out how much of your payment goes in that account, and what the balance is.



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