Congratulations on finalizing your mortgage payment and welcome to the rank of homeowners in Matthews, NC. While paying off your mortgage comes with innumerable benefits, there is a lot of confusion and uncertainty regarding home insurance. Your mortgage must have come with mandatory home insurance from the lender. However, with the mortgage gone, you have a choice to either keep your home insurance or get rid of it. If you ask us at JC Demo Insurance Group, the latter is always a bad idea. So, what happens after you pay off your mortgage?

Does it change? 

A big yes. When you pay off your mortgage, a lot of changes with regards to your insurance. You are likely to receive several documents; one from your lender stating that your loan is fully paid, canceled promissory note, your canceled deed of trust or mortgage, and a certificate of satisfaction. A promissory note is what you signed when you took out a mortgage, which required you to pay your lender based on the agreed timeframe and interest. The mortgage is the agreement that grants your lender the title of your home.

What about your home insurance?

By now, you know the importance of home insurance and that you need it now more than ever. You don’t want to start dealing with fire damages or burglaries in your home just when you have owned it. An important step here is to inform your insurance company that you are the sole owner of the property so that they can remove your lender’s name. Failure to take this step can cost you penalties. If you keep your home insurance, you might also need to update your payment options and have your bills sent straight to your home.

Now that the challenging parts are over, it’s time to review your home insurance policy and update it accordingly. Speak to any insurance agent at  JC Demo Insurance Group serving Matthews, NC, and they will help you get some value for your money.