Is Home Insurance Paid In Advance?
14231 POINTSview profileTom SheehanAgency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482Generally speaking, yes it is. If you are buying a home and your lender is setting up an escrow account set up for you, then you will be requred to pay the full first year's premium before closing. But even if you are paying your premiums directly to your insurance provider, the premium you pay is for coverage that will be provided for a certain term. If for example you pay monthly on the first of the month, that premium will be for coverage provided until the first of the following month and so on.Answered on July 25, 2013flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaInsurance policies are always paid in advance. There is a time when legal requirements make it appear that the policy is not paid in advance, however, that is the theory. The computer has allowed companies to determine fractions of premiums and they usually try to stay ahead of that fraction.Answered on August 27, 2014flag this answer
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