Homeowners insurance does not necessarily have to be escrowed, but it is a common practice in many mortgage agreements. Escrowing means that the mortgage lender collects a portion of your insurance premium along with your monthly mortgage payment and holds it in an escrow account. This account is used to pay your insurance premium when it is due. Escrowing homeowners insurance can provide convenience and peace of mind, as it ensures that your insurance premium is paid on time and that you maintain coverage. It also helps to evenly spread out the cost of insurance over the course of the year. However, not all mortgage lenders require homeowners insurance to be escrowed. Some lenders may allow you to pay your insurance premium directly to the insurance company. It is important to review your mortgage agreement and discuss with your lender to determine if escrowing homeowners insurance is a requirement for your specific situation. Keep in mind that even if escrowing is not required, it may still be a good idea to consider it for the convenience and financial planning benefits it offers.