Escrow and homeowners insurance are two separate things, but they are often related when it comes to buying a home. Escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It is commonly used in real estate transactions, where the buyer's funds are held by a neutral third party until all the terms of the agreement are met. Homeowners insurance, on the other hand, is a type of property insurance that covers losses and damages to an individual's house and assets in the home. It provides liability coverage against accidents in the home or on the property. While escrow and homeowners insurance are not the same thing, they are often linked together when purchasing a home. In many cases, homeowners insurance is included in escrow. This means that the buyer's monthly mortgage payment includes a portion for homeowners insurance, which is then paid by the lender from the escrow account. This ensures that the home is protected by insurance and that the premiums are paid on time. However, it's important to note that not all lenders require homeowners insurance to be included in escrow. Some may allow the homeowner to pay the insurance premiums directly. It's always a good idea to check with your lender to understand their specific requirements regarding homeowners insurance and escrow.