How Cheap Homeowners Insurance Equals Lower House payments

Average home insurance cost

Compare Homeowner's insurance helps you save money on mortgage payments every month?

80% of the population escrows their monthly mortgage payment.

If you are escrowing your mortgage payment, that means you are lumping money in the pot with each payment for (PITI) principal, interest, taxes, and insurance. 

Once a year, your mortgage or loan services company will make your property tax and homeowner's insurance payment for you.

When you compare homeowner's insurance with other companies, you can find significant savings.

These savings benefit homeowners by reducing the amount collected each month for homeowner's insurance because of the lower cost of insurance.

Let's find out how we can reduce or cost by comparing homeowner's insurance rates with other insurance carriers the fast and easy way.

So, how do I lower my monthly mortgage payment with lower homeowners insurance?

Easy, once a year or more if you have a lot of free time, shop for lower homeowner’s insurance.  If your cost of home insurance is less than the mortgage company will reduce the amount, they need to collect each month.

Make sense?

Lower insurance and/or property taxes equals lower monthly payments.

The challenge is every year taxes and insurance keep rising.  We can’t help you with your taxes, but we can’t advise on your home insurance. 

You need more than just a home insurance agent – generally, agents only represent one company.  So, what are you going to do next year when rates go up, again?

That insurance agent is going to say, “Let’s increase your deductible (higher out-of-pocket cost if you have a claim), or we could remove or lower your coverages.

That doesn’t sound like a good idea, does it?

Let’s explore a new concept – work with an insurance broker.  Insurance Brokers represent multiple home insurance companies. 

So, next year when you see a rate increase that is higher than you want to pay, have your home insurance broker re-shop with their network of companies for more affordable options.

Is It Hard to Change Home Insurance Companies?

It’s not as hard as you might think to switch homeowner's insurance carriers.

Now that you have found a better home insurance rate, how do you cancel the old policy and start a new one, easy…

First, you want to make sure the first company has been set up and running.  Depending on the value or size of the home, there might be some inspections - $750,000 or higher home replacement value.

But, for the most part, there might be a drive-by inspection looking at the exterior of the property to look at the roof, yard, and building condition, plus if there are any non-disclosed animals (dogs). 

Assuming everything is good to go, you are safe to request your current home insurance policy to be canceled.  Let the company and agent know the effective date and if any refund due to send to your address.

If you are planning on starting the new home insurance on the same date as the old home policy, then there will be no refund coming.

Make sure if you are within 30-45 days of renewal to contact your mortgage company to let them know you are switching home insurance companies and not pay the premium yet. 

If the premium has been paid to the old company, don’t worry.

When you set up the new policy, it should have been mortgagee pay (lender pay), and they will be waiting for the payment.  When the old policy gets canceled, they will refund the premium to you directly, not the mortgage company.

This is important

When the check comes in the mail, make sure to cash it and write a new check payable to the new home insurance company.

Next year, the mortgage company will receive a notice from the new carrier to pay, provided you let the mortgage company know about the change.

It is NOT the responsibility of the insurance agent or broker to contact your mortgage company, so do not assume it will happen automatically.

The steps are SIMPLE…

  • Start new home insurance policy
  • Notify mortgage company of change (check to see if they made recent payment).
  • If you receive a refund from the old insurance company, make sure the new home insurance premium is paid up or you will need to send a payment.

In many cases, you can save enough money when you escrow. You will actually see your escrow balance get recalculated for a lower monthly house payment, win-win.

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Let us help you find the most affordable homeowner's insurance policy.

Some Ways to Lower Home Insurance Without Switching

Bundling home and auto is an easy way, but not always the best option.  

Some auto insurance companies might be extremely competitive with car insurance, but not with homeowners insurance. 

In some cases, it still makes sense to split them up, but you will need to find out when shopping.

Ask your current home insurance company to re-score your insurance – which is a combination of credit, longevity, and any prior claims.

You may not have any claims and have been with the same insurance company for years, but your credit has improved, which should give you a lower home insurance premium.

What is the age of your roof?

This is going to be especially important if you live anywhere. The weather is a problem like hail and wind damage.  Someone with a 20-year-old roof is going to pay a lot more for homeowner’s insurance than someone with a new roof, plain and simple.

Home security systems just make good sense, but honestly, it is probably a 2% - 5% discount. 

It is not the reason you should be purchasing for the discount, but for the added protection – monitored systems will give a greater discount but will require a certificate showing the home is being monitored.

The #1 way to save money on home insurance

The best way to find cheap homeowners insurance

Get comparison rates from several insurance companies at least every couple of years.  

If you are like most people, you do not have the time to call three let alone 10-15 home insurance companies.  That is why we recommend using a home insurance broker for quote comparisons.

Frequently Asked Homeowners Insurance Questions

how much homeowners insurance do i need calculator?

The cost of homeowners insurance can very greatly by the size, age, build quality and any updates or improvements.  

Weather is also a major factor, and some cases, especially if you live on the coast or Florida you will find home insurance to cost much more.  

To get a quick estimated quote for your home or a home you may be considering buying use our free HOME INSURANCE CALCULATOR


How to compare home insurance quotes?

Comparing home insurance rates is important to check at least every 2 years.  Insurance companies are always making adjustments depending on previous losses in an area.  Checking online for the best available rates is easy - START HERE

How compare home insurance companies?

Comparing home insurance companies for the best coverage at an affordable premium is important to compare every 2 years.  

Rates can very greatly from company to company.   We also recommend checking with carriers even if you do not have your auto insurance with the same company.  

In some cases it can be more cost effective to use two different companies.    Check rates and compare insurance companies HERE


how much does homeowners insurance cost?

Homeowner's insurance rates will very depending on location, age of home, age of roof, prior claims and credit.  You will need to get multiple quotes to find the best rates because they premium can very greatly with every company.  

Home Insurance Brokers represent many companies and there is no cost to use their service, which is a real time saver.  To get quotes today start HERE for local home insurance quotes.



Make sure to ask about any available home insurance discounts and how you can qualify for them.

Shop for lower rates at least every couple of years.

Use an Insurance Broker to simplify the process now and in the future.

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About the Author

John Espenschied is a long-time veteran of the insurance industry. He has worked in various positions within the industry for over 20 years, and for the past 15 years, he has been the owner and operator of Insurance Brokers Group, an independent insurance agency. John loves advising people on the insurance that meets their needs and goals, whether it be for personal or commercial purposes.

John is married to Melissa, and they have three children together, as well as three grandchildren. In his spare time, John enjoys golfing and playing in the golf league, biking to their local brewery along the Missouri river, and going on motorcycle rides when the weather is nice.

John Espenschied

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