How much insurance do I need?
The terms of your mortgage require enough insurance to cover at least 100% of the estimated replacement cost for your home and any improvements to your property. However, that may not be enough to protect you financially. Ask your insurance agent if you also have enough coverage to protect you from personal liability for accidents that occur on your property, and to replace your personal property if it’s damaged, destroyed or stolen.
Why does ServiSolutions require at least 100% replacement cost coverage?
As your servicer, ServiSolutions also has a financial interest in the property. Replacement cost coverage ensures your home can be repaired to the original condition.
Can I just let my policy lapse and get a new one later to save money?
No. We monitor your loan to make sure you maintain continuous homeowners insurance coverage for the entire term of the loan, without letting it lapse for any period of time. Any lapse will result in lender-placed coverage.
Will ServiSolutions purchase lender-placed insurance without my knowledge?
No. If we find a problem with your insurance or don’t receive acceptable proof of insurance, we’ll send you a letter explaining the steps you need to take.
How will I be billed for lender-placed insurance?
If ServiSolutions purchases lender-placed insurance on your behalf, we will include the premium in your monthly mortgage payments. Premiums for lender-placed insurance will be paid from your escrow account. If this causes a shortage, your escrow account may be analyzed and your payment adjusted to reflect the new insurance premium amount.
Can I cancel lender-placed insurance?
When you provide proof of acceptable coverage, we’ll cancel the lender-placed policy and charge you only for the time it was in place.
When is homeowners, flood and/or wind insurance paid?
Upon receipt of the bill from your insurance company, we will pay your insurance annually on or before the renewal date that is listed on your policy.
What if I decide to change insurance companies?
If you are changing insurance during your renewal term, call Customer Service and let us know. If you are changing insurance companies mid-term, see the below question.
What is a midterm policy change?
This is when you make changes that may affect your insurance premium outside your renewal period. If changes are made midterm you will be responsible for requesting a refund for any used premiums from your previous provider and making payment in full to your new provider. Your new provider may forward ServiSolutions proof of payment along with the evidence of insurance or declarations page to the attention of the Insurance department. You will be subject to a $7.50 midterm policy change fee. If you wish to have your monthly payment adjusted due to the change please send a written request for an escrow analysis to be completed.
For any insurance-related questions, please contact [email protected].