Mortgage Change to Your Homeowners Insurance

Did you refinance your mortgage in the last year? Or was your mortgage sold to another lender?  If so, you need to report the change in mortgagee to your insurance company.

Failure to update your insurance policy could result in cancellation of your homeowner’s policy for non-payment of your renewal premium.  It is your responsibility to report the change in mortgagee to your insurance company; not the responsibility of the mortgagee.

In addition, failure to change the mortgagee could result in a breach of your mortgage if your property were to have a loss.  This would happen if your current mortgagee did not receive the insurance proceeds as required by your mortgage.

Keep in mind, these mortgage changes would also apply to condo insurance or a rental dwelling if it has a mortgage.

How Mortgage Billed Homeowners Insurance Works

Often, lenders require homeowners to include insurance premiums with their monthly mortgage payments.  These amounts are set aside by the lender in an escrow account. When it comes time to pay your homeowner’s insurance premium, your lender will pay the premium from the escrow account.  However, if your mortgage company has changed, your current mortgagee may not get the invoice.  The risk is that the premium will not be paid.

If your lender is unable to pay the premium because it did not receive the invoice, your policy may be canceled for non-payment of premium.  This will be frustrating and confusing to you because you will have paid insurance premiums as part of your monthly mortgage payments.


So, check your homeowner’s policy today to confirm that the correct mortgagee is listed. To verify this information, contact your agent with your mortgage company’s name and loan number. This will prevent any problems with the payment of your annual renewal premiums.

For more information regarding homeowner’s insurance or to verify that the correct mortgagee is listed, contact RMC Group at 239-298-8210 or [email protected].