Home insurance is a standard protection that almost every homeowner should have. It’s a requirement if you’re buying a house in Commerce, GA. Here’s how homeowners’ policies are typically paid.

Initial Payment

The initial home insurance payment is usually submitted to your insurance agent when you first purchase a house. For example, we at Hyman Brown Insurance Agency Inc. can accept your payment if you choose a homeowners policy through us.

This initial payment covers the first year of home insurance; the full year’s premium is usually due upfront. Once your initial payment is made, an "insurance binder" will be sent to your lender. This document shows that you’ve purchased home insurance. Your lender will likely require the document at or before closing.

Ongoing Payments

After the initial payment, you normally won’t send future home insurance payments to your insurance agent. We at Hyman Brown Insurance Agency Inc. are still available for coverage questions or claims, but payments are usually sent to your bank instead.

Your "mortgage payment" usually includes the mortgage, property taxes, and home insurance. Your annual home insurance premium is broken down into monthly payments, which are paid with your mortgage. The home insurance premium part of your payments is held in escrow.

When your home insurance policy needs to be renewed in one year, your bank will pay the next year’s premium from the escrow amount. If the next year’s premium is different from what’s expected, you might have a small additional amount due or receive a small credit back.

Get Help With Home Insurance

If you have any questions about home insurance and are in Commerce, GA, contact us to talk with a knowledgeable agent. We’d love to help ensure your home is properly covered, and we’re happy to help with logistics, like understanding how the policy’s premium is paid.