Is Home Insurance Part Of Closing Cost?

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   If the premium for a homeowner’s policy is in an escrow closing that will be noted in the papers you sign. If you are responsible to provide the insurance, outside of the closing, the lender will normally require evidence of insurance at or before closing. This can create difficulties when you refinance in the middle of the year and move from a loan with an escrow account to one without an escrow account. If you fail to notify the insurance company the premium notice goes to the wrong place and it can lead to a policy lapse which is a major headache!!

   Answered on August 20, 2014

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