If you ever leave a home uninsured, you’ll leave yourself exposed to costly damage risks that you don’t want to face alone. That’s why it’s important to always pay your premium. The good news is that many insurers offer you many flexible options to pay for your plan. Depending on your needs, one of these options might be better than the others.
So, why not ask your agent about the benefits of choosing different payment options? Here’s a closer look at some of these choices. Don’t hesitate to consider them the next time you renew your coverage.
1. Paid In-Full Premiums
A paid-in-full premium is one that you pay in its entirety at the time you enroll in your plan. Therefore, you won’t have to make another premium payment until your policy comes up for renewal once again.
In fact, many home insurers and mortgage lenders require you to pay your first year’s premium in-full at the time you buy your first policy. This ensures that you can close on the home with the guarantee that you have a policy in place. You won’t have to worry about forgetting a payment later. Sometimes, insurers even offer a premium discount for those who pay-in-full.
2. Premium Installments
If you don’t have the option to pay-in-full, then most insurers allow you to pay for your premium in installments. Some even offer payment plans that allow you to pay off the premium in a shorter period than the actual policy term. Though you will have to remember to pay this premium each month, you can still manage payments at a level you can afford.
3. Online Payments
Regardless of whether you plan to pay your premium in-full or in installments, an online payment allows you to avoid some of the risks of snail mail. You won’t have the risk of your payment getting lost in the mail and forcing you to face late fees or potential policy cancellation.
4. Automatic Payments
If you enroll in online payments, then you will often have the option to also enroll in automatic payments, too. Through automatic payment, you allow your insurer to charge your card or deduct your premium from your bank account when each payment is due. Using this method, you can avoid the risk of ever missing a payment, and some insurers offer discounts for clients who choose this option.
Besides enrolling in convenient payment options, also ask your insurer if you can enroll in a policy that offers you automatic renewals. By automatically renewing your policy year over year, you won’t have to worry about potentially forgetting to renew and letting your homeowners policy lapse. Along with payment benefits, automated renewals are easy ways for you to always maintain an active policy.
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