How Does Home Insurance Escrow Work?


Using Escrow/Mortgagee Bill For Your Homeowners Insurance

Paying for your home insurance with your escrow account is quite common. It's easier for you, because you only have one monthly bill to pay which will include your loan amount, interest, taxes, and your homeowners insurance premium

If you pay via escrow, your escrow account manager (usually your title company) will pay the full 12-month insurance premium up front on your behalf. Note: you'll often get a paid-in full discount! Then, they will split up the cost across your next 12 monthly mortgage payments, so you effectively still only pay a monthly rate plus some interest. 

How Do I Pay With Escrow?

To setup escrow payment on your insurance, just provide the following details to your insurance agent when purchasing your new policy:

- Your Mortgage Loan #
- FULL LEGAL NAME of your Lender
- Lender Address

- Lender's Email Address (optional)

Example:

Loan #: 421275329623398
My Lender Company, Inc. ISAOA/ATIMA
550 Mortgage Lane
City, ST 00000

Your insurance agent will put this on the declarations page of your homeowners policy and this policy will be submitted/tracked by your title company. Your title company is most likely one of the big 4 below:

Title Company Market Share
Fidelity National Financial 33.86%
First American Corporation 26.34%
Old Republic National Title Insurance Company 13.53%
Stewart Title Guaranty Company 12.95%
Other Regional Companies 13.32%

The good news is, once you setup your home insurance with escrow pay it's super easy to manage and renew. Just a quick review plus a signature and you're good to go!

oh yeah yes GIF by Noah Cyrus

At your service,
Young Alfred