Refinancing changes what you're protecting
New balance, new term — and coverage sized to the old one.
A refinance changes two things that matter to your coverage: how much you owe and how long you'll owe it.
If you bought mortgage protection sized to the original loan, it's now sized to a loan that no longer exists.
The balance may have moved either way
A straight rate-and-term refinance usually leaves the balance close to where it was. A cash-out refinance raises it, sometimes substantially.
If you took cash out, the obligation your family would inherit grew. Coverage sized before that change no longer covers it.
The term almost certainly changed
Refinancing often resets the clock. If you were fourteen years into a thirty-year loan and refinanced into a new thirty-year term, you've added years of obligation.
A policy with a term matched to the old payoff date will now end well before the mortgage does.
The rest of the list
- Confirm your homeowners policy reflects the new lender
- Check whether escrow arrangements for insurance have changed
- Re-run your life insurance number against the new balance and term
- If you dropped PMI through the refinance, confirm it's actually gone
Do it while the paperwork is out
You already have the balance, the term, and the payment in front of you during a refinance. That's most of the information a coverage review needs, which makes this the cheapest time to do it.
Want this checked for your situation?
General information only. A licensed insurance professional can tell you what actually applies to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state. Quote My Policy LLC is a licensed insurance producer.