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I just bought a house, and the mortgage company said they would pay my homeowners insurance through an escrow account. What does this mean? Do i need to put money into the escrow?
Luckily, if you have a mortgage, homeowner’s insurance isn’t something you will need to worry about paying out of pocket separately. When you pay your monthly mortgage payment, a portion of that payment is deposited into your escrow account automatically. The amount is based on your insurance and tax costs and will typically rise throughout the mortgage.
If you want to renew your current insurance, your mortgage company will automatically pay the renewal premium. However, if you’re shopping around and want to change companies, all you need to do with the new policy is relay your mortgage company information to your independent agent to make sure the correct documents are sent over to them to pay.
Once you pay off your mortgage, you’ll be responsible for paying your insurance (and taxes!) out of pocket directly to the carrier.
Our insurance agents can help you compare quotes to see if there is a better rate available and make sure your paperwork is properly filled out so your mortgage company pays the premium.
