I received an unusual letter from my home mortgage company today. The letter said that my mortgage company had received a new insurance policy for my house issued by Nationwide Insurance. The letter correctly identified my current insurance carrier. The letter went on to say that there was not enough money in my impound account to pay the $1,069 insurance premium, so I would need to pay the premium in order for the new policy to take effect. I had never heard of Nationwide Insurance until today.
It’s a mystery to me how a new insurance policy was issued with my current mortgage information without my knowledge or approval. It’s fortunate that I don’t have an impound account with my mortgage company because, if there was money in an impound account, the mortgage company probably would have paid the unauthorized premium. I pay house taxes and insurance myself so that no company gets any more of my money than I am required to give them.
If you have an impound account connected with your home mortgage, you might want to scrutinize the transactions to make sure your mortgage company isn’t paying anything that you haven’t authorized.