Is Home Insurance Paid Through Escrow?

1. 

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   Tom Sheehan

   Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482

   It can be, yes and this is a decision made by your bank or mortgage company.  In Connecticut, the majority of the larger institutions do require this whereas some of the smaller local banks do not.  If your bank or mortgage company does require this, say at the time you are purchasing your home, you will be required to show both proof of existing Homeowners insurance and a receipt certifying that the full first year's premium has been paid.   Then your Homeowners Insurance company will send renewal premium statements to your bank for payment from your escrow account.

   Answered on April 29, 2014

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2. 

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   David G. Pipes, CLU®, RICP®

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

   Homeowner’s insurance can be paid by the insured or by the mortgage company from an escrow account.  While it is optional for some borrowers, most are required by the lender to use the escrow account.  The homeowner’s policy also protects the interest of the mortgage company and they want to make sure that coverage remains in force.

   Answered on June 26, 2014

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3. 

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   Tom Sheehan

   Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482

   Here in CT, many of the larger banks and mortgage companies have been requiring an escrow account for insurance premiums for quite some time. Many will also escrow for annual property taxes as well. In my experience though, some of the more local or regional banks and mortgage companies may not necessarily have that same requirement.

   Answered on August 13, 2014

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