When you're owed a premium refund, there are a few ways the funds may be sent to you. These mainly depend on how you paid your premium in the first place.
If your mortgage company escrows your home insurance and pays your insurance premium, then the refund typically goes directly to you via digital check email. You can then choose to:
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Have the check deposited directly to your bank account using your account and routing number.
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Print a refund check to deposit.
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Wait for a refund check in the mail (this usually takes 7 to 15 days, depending on your insurer).
Note: To avoid any shortages or a dramatic increase in your mortgage payments for your next policy period, it’s smart to return the refunded amount to your escrow account.
If you paid for your policy with a credit or debit card, your insurance premium refund may be sent back to your card. However, if the most recent payment was a while ago, perhaps more than 180 day, or the refund amount is more than the most recent payment, your refund may be issued with a check.
In short, all insurance premium refunds go straight to you.
Is the premium refunded in full?
In most cases, yes, any unused insurance premium will be refunded minus fees. For instance, Florida homeowners pay a $2 EMPA fee. It's deducted before unused premiums are refunded to Florida homeowners. Insurers are required to submit that $2 fee to the state in all situations except when the policy is canceled because a closing fell through.
Learn more about the EMPA fee.
How long do insurance premium refunds take?
It depends how you're getting your refund. Refund checks can take 7 to 15 days to receive by mail, but you may receive them faster by opting for direct deposit or to print your check.
If your insurance refund is being sent back to your card, it’s usually 3 days for debit cards and 7 days for credit cards.
Many insurers try too initiate an insurance premium refund within 15 days of the refund request date.
