In Texas, you can pay your condo insurance premium with a credit card (American Express, Discover Card, Master Card, Visa, or Diners Club), cash, check, or money order. In addition, some condo insurance providers allow for payments through an escrow account maintained by banks and mortgage lenders.
You are primarily responsible for the payment of your own condo insurance premiums. In some cases in Texas, your mortgage lender can maintain an escrow account to pay for your insurance premiums. However, you are responsible for funding the escrow account.
In Texas it is possible to make your condo insurance payments using credit cards, debit cards, or cash as the condo insurance provider allows. Another payment option is through an escrow account maintained by your mortgage provider.
The typical options are:
A typical Texas insurer that sells condo insurance will allow the insured the option to pay for coverage in full or split the full sum into more manageable (usually monthly) payments.
In addition to annual lump-sum premiums, Texas condo insurers commonly provide monthly payment options. Choosing a monthly option may or may not add extra to the cost, compared to if it was paid in full. In most cases, if the extra costs are charged by the insurer or the third party, they come in the form of:
a flat Administration fee of around $5-10 per month - which helps cover the costs of generating and processing payments every month and the manpower required for it, or
a percentage of the annual policy premium. In this case, the extra costs are borne through the interest rate of premium financing. The insured can seek the services of a 3rd party financing company. The financing company pays off the annual premium in full to the insurer, which starts the coverage for the insured. In return, the insured makes periodic payments to pay off the loan. The payment includes the loan payoff principal and interest charged by the financing company.
According to Sec. 651.001 of the Texas Insurance Code, condo insurance premium financing is done through a premium financing company. Premium financing is a loan agreement between a policyholder and an approved premium financing company. In essence, premium financing is a loan arrangement where a premium financing company pays your insurance premium, and then you pay back with agreed interest. If you are considering premium financing, ask a Texas-licensed property and casualty (P&C) insurance agent for guidance.
Condo insurance premium financing in Texas differs from other payment methods because it is a loan given by a premium financing company, and it is often slightly more expensive due to interest charged.
Condo insurance in Texas can be paid:
as stipulated in the condo insurance policy contract.
In Texas, you can pay condo insurance premiums monthly or yearly. However, condo insurance providers often offer discounts that can help you save on insurance premiums if you choose to pay yearly.
Yes, you can pay your condo insurance premiums annually in Texas. Paying annually may earn you discounts from your insurer and this allows you to save on costs.
No, in Texas your new condo insurance cannot cover old bills. When switching to a new condo insurance provider you cannot expect the new policy provider to pay for events that occurred before your new insurance plan came into force. The date of the covered event determines which insurance pays for it. Whichever condo policy was in force on the date of the damage, is the one that will pay. In case if there was a secondary (overlapping) condo policy, one is treated as primary, while the second policy covers what the first one did not afford to. Speak with a licensed Texas residential property insurance agent for more policy-specific details.
Condo insurance bill in Texas is usually paid through:
Mortgage company - where the bank that finances the condo collects the funds from the condo owner into an escrow account, and uses those funds to pay for insurance when the bill becomes due.
Automated withdrawal from the bank - most Texans with paid off real estate property, who do not use banks with escrow accounts, make insurance payments through automated payments, usually as a scheduled bank transfer (ACH - Automated Clearing House)
Mail - a large portion of Texas condo owners prefer to mail premium payments as paper checks through the mail.
Condo insurance premium does not have an additional sales tax that gets passed on to the insured consumer. The insured may end up paying the actual cost of insurance, premium finance charges, and admin fees, but not tax. While the insurer itself must pay taxes to the state of Texas on all premiums that were written inside the state, this cost is not passed on to you - the insured.
In Texas, your condo insurance may be tax deductible if the condominium is used as a rental property or if part of the condo is being used as a home office.
For taxation purposes, seek advice from a licensed tax professional.
Yes, provided you pay within the grace period stated in your insurance policy document. Texan Condo insurance providers usually allow a grace period for paying your outstanding insurance premiums. Once your grace period elapses and your condo insurance premiums have not been paid, your insurance provider reserves the right to cancel your plan.
Yes, condo insurance providers must list grace periods in the initial insurance policy contract. In Texas, grace periods can range from 10 days to 30 days depending on your insurer.
A grace period in condo insurance is a period in which premium payments can be delayed without penalty. Grace periods prevent condominium insurance policyholders from losing coverage when they cannot pay premiums on the due dates. The duration of the grace period determines how many days past the due date the payment can be late, before the policy lapses, eliminating coverage.
No, there are no grace periods after your Texas condo insurance policy has been terminated. The only available option after your condo insurance has been terminated by an insurance provider is to reapply for new coverage and reinstate the condo insurance policy. Speak with a knowledgeable Texas property insurance agent.
If you cannot pay for your current condo insurance plan, you can consider canceling it and opting for a less expensive plan. Consult with an experienced property insurance agent, so they can check on the more affordable coverage options. Alternatively, you can also contact the Texas Fair plan at (800) 979-6440 for the possibility of getting a reasonable plan best suited to your budget.
A condo insurance lapse happens when your policy no longer provides coverage. Usually, if you miss a payment for your condo insurance premiums, your condo insurance does not lapse. However, your condo insurance will lapse if you miss a payment and delay until you are outside your condo insurance provider's grace period.
Speak to a Texas-licensed residential property insurance agent to learn more about Condo insurance near you.