Yes, homeowners insurance is often paid from escrow. When you have a mortgage on your home, your lender may require you to have homeowners insurance to protect their investment. To ensure that the insurance premiums are paid on time, the lender will typically set up an escrow account. An escrow account is a separate account held by the lender to collect funds for property-related expenses, such as homeowners insurance and property taxes. Each month, a portion of your mortgage payment is deposited into the escrow account, and when the insurance premium is due, the lender will use the funds from the escrow account to pay it. This helps to ensure that the insurance premium is paid on time and that the property remains adequately insured.
It's important to note that not all homeowners insurance policies are paid from escrow. Some homeowners may choose to pay their insurance premiums directly to the insurance company. Additionally, if you own your home outright without a mortgage, you won't have an escrow account and will be responsible for paying the insurance premiums directly.
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- 'When you have a mortgage, your lender will typically require you to have homeowners insurance. The lender may also require you to set up an escrow account, which is a separate account held by the lender to collect funds for property-related expenses, such as homeowners insurance and property taxes. Each month, a portion of your mortgage payment is deposited into the escrow account, and when the insurance premium is due, the lender will use the funds from the escrow account to pay it.'' }