Question

I have an email in to our lender and am going to reread the paperwork, but hoping someone has clarification. We just hit 1 year in our new home and got the updated home insurance packet (not the PMI. ) When we purchased we rolled our insurance into the mortgage. Is this automatic every year? Does this coincide with the escrow? Is the insurance the escrow? Oy I am confused. I dont want to somehow have a lapse in insurance.  

Answer 1

We get our new policy every year (price increase/decrease yada yada) but we don’t have to do anything else. Ours is also rolled with our mortgage

Answer 2

If you have an escrow set up with your lender, then they will pay your insurance and tax bill from there once they receive the bill. If you don't have an escrow with your lender then it's your responsibility to pay future bills. In this case, only the first payment is rolled in.  

Answer 3

Should be automatic every year. Your escrow account houses your insurance premium and property taxes and are paid out of that account. But your home owners insurance company will send you a copy of the new policy every year it renews much like auto insurance.  

Answer 4

Yes, you pay for insurance every year and if it is included in your mortgage payment then it is in your escrow. You can shop around and the insurance agent will help take care if it with your mortgage company. Our premium went down when we rolled over insurance over to travelers so we got a refund.  

Answer 5

If it's in an impound account, the lender will pay for the life of that loan. if you refinance, you'll have to set up the same type of account or you will have to pay yourself.  

Answer 6

Your escrow is probably insurance and taxes. If they (meaning your mortgage lender) spend over a certain percentage of the escrow amount (i. e. your insurance or taxes go up significantly), they'll increase your escrow amount which in turn increases your mortgage payment. The same applies if your taxes or insurance decreases significantly.  

Answer 7

We just closed on our home the other day. I wanted to pay our homeowners insurance separately, but was told it has to be paid by the mortgage company. They keep extra money in there (escrow) for when the premiums go up.  

Answer 8

Our property tax and insurance gets paid out of our escrow every year. We get a statement from our county about how much our property taxes are every year. Our insurance just auto renews but they don’t send us anything

Answer 9

It renews automatically and you pay it in your escrow payment. However. Be sure to check the rates from time to time. I just changed mine yesterday and bundled with my car insurance for a savings !  

Answer 10

Thank you everyone. You have put my mind to ease. I will wait for confirmation from the lender but I think we are good!  

Answer 11

Insurance usually comes out of your escrow, your insurance company will get ahold of the bank your using and it’s usually done automatically

Answer 12

It's a renewal. Just showing difference in cost in policy. It will stay escrowed