New Year’s Resolution #1: Pay your insurance before it expires.
New Year’s Resolution #2: Review your current property limits to make sure they are adequate to replace what is there now.
New Year’s Resolution #3: Cover outside electrical outlets.
Wet outlets are a fire hazard. Last year, two customers experienced a fire loss that originated with a wet outdoor electrical outlet.
New Year’s Resolution #4: Winterize your home. If you’re heading to down south to warmer weather, check your shut off value to be sure it is functional. Turn off water to your refrigerator and washing machine.
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During this challenging economy we have found that paying insurance premiums on time is difficult for some. Unfortunately, a history of late payments can adversely affect your cost and the availability of insurance. Besides incurring a late fee, late payments jeopardize your current policy and future rates. Here are some important considerations:
Losing a Preferred Policy
Many carriers will no longer write new homeowners policies on properties in the coastal areas. If you have a preferred policy and it is cancelled because of non-payment or late payments, you will not be able to obtain a preferred policy again.
Shopping for new insurance isn’t easy if you’ve been canceled
When you apply for a policy with a new insurance company, it will check to see if you’ve been canceled for nonpayment of premiums with your former insurer. If that’s your case, it may not want to insure you — even if your driving record is spotless. Or, it may not allow you to purchase insurance through an installment plan, insisting on one annual payment instead.
Policy Non-Renewal
An additional consequence is the fact that your auto insurance company might no longer wish to insure you after reviewing your payment history. You might find that they’ll issue you a notice of non-renewal. The purpose of this notice is to inform you that they’ll no longer wish to insure you once your policy expires.
Paid In Full Renewal
Additionally, you might find that your auto insurance company will be willing to renew your auto insurance policy; however, they may require that you pay it in full for coverage to be extended. This is something the insurance carrier (ie. Progressive) will do if they find you suitable for coverage but to still ensure against delinquency
Insurance Credit Score
Late payments can also damage your insurance based credit score. Almost all insurance companies will review not only your credit, but also your prior insurance history when they’re determining the rates to charge you.
Auto Insurance
If your auto insurance is cancelled for non-payment, the State will be notified. If your car is still registered, you will then be facing a penalty for having an uninsured vehicle. When you obtain a new policy, you will be accessed an additional insurance penalty for having an uninsured vehicle. In many cases, you will have to pay the entire premium in full.
