Is Homeowners Insurance Part Of Your Mortgage Payment?

  1. 29 POINTS
    Thomas McGill
    Licensed Benefit Advisor, GoHealth,
    No it is not. You can however have it escrowed. You may prepay the premium each month factored into your mortgage payment and the mortgage company will pay the premium at each renewal on your behalf. Don't be confused with mortgage insurance if you have a FHA loan. This insurance protects the lender in case you default on the mortgage.
    Answered on May 21, 2014
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  2. 730 POINTS
    Darald Novak AAI
    Retired Agent and Broker, Self Employed, Albany NY USA
    Not unless your lender requires it or allows it. Contact your lender and inquire about an escrow account.  You may already have an escrow account for taxes. If so, see if the property insurance can be added. Most likely you will have to add the property insurance at the renewal date of the policy after you pay the annual premium in full. Then your lender adds ther escrow additional to your billing every month until next policy renewal when they have collected 1/12 of the estimated premium from you each month and can pay your policy for you. Make sure you get copies of all documents relating to this action  and your homeowners carrier changes your billing method to 'escrow bill', they have the correct address of the escrow disbursement entity, and the correct account number of your loan to reference their bill to the escrow disbursement entity. Follow up to make sure your carrier bills your escrow company and the bill is paid. Do not wait for a notice of cancellation for non-payment of your policy to be issued. Be pro-active with all of your insurance policies and always get it in writing - especially anything you sign.  If someone tells you over the telephone "OK, we will take care of that for you...", tell them to send you a confirmation (or binder) in writing with a signature.
    Answered on May 21, 2014
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  3. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    Not necessarily unless your Mortgage Company requires you to have it that way.  In that case, an escrow account is set up and the future renewal payments will be drawn from that account when your insurance company bills your mortgage company.  You make the monthly installments to the bank and then they in turn pay your renewals.  Many banks also handle property taxes this way as well.
    Answered on May 21, 2014
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  4. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! The answer is it can be, but isn't normally. I have seen where the mortgage payment was inclusive of the homeowners policy premium, as a result of the lender having to reinsure the home when the owner allowed the previous policy to lapse. It isn't the usual case, but it can happen. Thanks for asking!
    Answered on May 21, 2014
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