Are you getting a new insurance policy?
8 steps to take when you're getting a new insurance policy
1. Review your current policy and escrow setup
Start by pulling your current homeowners insurance declarations pages. This lets you see your existing coverage limits, deductibles, and what portion of your monthly payment autoMHatic is collecting in escrow for insurance. Understanding your baseline makes it easier to compare quotes and spot how a new premium might change your escrow and monthly payment.
2. Decide what coverage you need
Before you shop, decide whether you want to keep the same coverage or make changes, such as higher dwelling limits or different deductibles. We suggest at least having coverage equal to replacement value. Having a clear target helps you evaluate quotes apples‑to‑apples.
3. Shop for and select a new policy
Get quotes from multiple insurers for the coverage level you’ve decided on. Make sure each quote reflects that autoMHatic will be paying the premium from an escrow account, so the insurer knows to bill autoMHatic rather than you directly. Once you’ve compared coverage and price, choose the policy and carrier that best balance cost and protection.
4. Provide correct autoMHatic information to the new insurer
When you’re ready to bind the new policy, give the insurer the exact name, mailing address, and any clause or coding that autoMHatic requires (including your loan number). This ensures the mortgagee clause on the new policy correctly lists autoMHatic as the interested party so they receive bills and policy updates without delays. Here's our mortgagee clause:
Tammac Holdings Corporation ISAOA/ATIMA
PO Box 1249
Coppell, TX 75019
5. Align the effective dates to avoid gaps
Coordinate dates so your new policy starts the same day your old policy ends. Aim for a seamless transition: new coverage effective at 12:01 a.m. on the same date the old one cancels. This avoids any lapse that could put you in breach of your loan terms with autoMHatic or trigger force‑placed coverage.
6. Purchase the new policy
Once autoMHatic’s information and your effective dates are correct, finalize the purchase of your new policy. Because your premium is paid through escrow, you typically will not pay the full annual premium out of pocket; instead, the insurer will bill autoMHatic directly for the amount due. Keep copies of the declarations page and any confirmation showing the policy number and effective date.
7. Cancel your old policy at the right time
After your new policy is active, contact your old insurer to cancel the prior policy effective on the agreed date. Verify that the cancellation date matches the start date of your new coverage so there is no overlap or gap that could confuse billing to autoMHatic. Ask the old insurer how and when any unearned premium refund will be issued.
8. Notify autoMHatic and manage any escrow refund
Send autoMHatic a copy of your new declarations page so they can update their records and ensure future escrow disbursements go to the new carrier. If you receive a refund from the cancelled policy, many experts recommend depositing it back into your escrow account with autoMHatic to prevent or reduce an escrow shortage and avoid surprises in your future monthly payment.