1. 7647 POINTS
    Mark Bartlett CLCS
    Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
    Including homeowners insurance in your mortgage payments would be an option between you and your lender. Many will chose this route just due to ease. This is called impounding. You can talk to your agent and lender about impounding your homeowners insurance if this is an option you desire.
    Answered on May 24, 2013
  2. 2210 POINTS
    Brenda Hanson
    Vice President/Agent, Best Rates Insurance Inc, Kalispell Montana
    It is optional but recommended as it is built into you home loan payments one less thing to have to worry about. But be buyer beware there has been in some places that the mortgagee picks your insurance carrier for you  many of time they have insured the home for just of the amount of the loan. Not every insurance carrier will give you full replacement value and also keep in mind that you can not insure the land. Only the building. Many clients that I have had to help re write them do to improper coverage from another agency who insured it for the appraisal value which is  NOT what the  real value of the home is.
    Answered on May 24, 2013
  3. 0 POINTS
    dmrozek
    Ann Arbor, MI
    The answer here is "maybe". Most mortgage companies will require a mortgage holder to have their insurance paid out of their escrow account if they have less than 20% equity in the home (generally). This is just to ensure that the policy is paid and in force. If you have more than 20% equity you may be able to pay it yourself. Some companies charge more to bill the mortgage company so there may be cost savings if you pay it yourself. Then again, some people don't want to deal with the bills and like to pay it in their mortgage payment. The only answer you care about is the one your mortgage company gives you. If they don't require it to be paid out of escrow the choice is up to you.
    Answered on September 11, 2014
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