Let’s face it: a vast majority of us have lien holders on our vehicles and mortgages on our homes. Each year financial institutions want updated information about your insurance. But what should you do if you paid off those loans?
Let us know!
Why you should let us know when you pay off your home or car:
- Claims – Should you have a claim, where do you want the check to go? If you still have the lien holder listed on your policy, the check will come with your name on it and the bank’s name. That can add a headache to an already stressful situation – voiding a check, verifying that loan is paid, removing lienholder, and reissuing check.
- Coverage – If your car loan is paid off, you will no longer be required to carry comprehension & collision coverages by your lender. However, it does not mean you no longer need that coverage. As always, you have the opportunity to talk with us about those coverages. We will then help you tailor to your coverage to meet your current needs. You will also have more room to play with your deductibles too.
- Billing – This topic is specifically for your homeowner’s policy. Most often, insurance gets paid through an escrow account. When you pay off your home, we need to look into changing your bill plan. Without changing the bill plan, your old mortgage company will receive the bill and could pitch it in the trash without your knowledge. Being proactive helps get the billing changed ahead of time so you can pick out a plan that works for you instead of scrambling to get your homeowner’s policy paid last minute.
- Celebrate – Wow! You just completed a great accomplishment. You paid off your home or car, let’s celebrate that. We aren’t Dave Ramsey, but we too love a debt-free shout out to celebrate this accomplishment with you also! Way to go!
Let us know when it’s time to remove those lien holders from your policy. If you have a statement booklet, write on the last page “Call Dean Ballenger Agency” as a quick reminder.
Coverage for the seasons of your life – means a meaningful conversation about your insurance when you pay off your loans. It’s a discussion about what this new payment free season can look like and how it affects your insurance.
Call us at 317-867-5433 or email firstname.lastname@example.org to let us know it’s time to remove a lienholder.