Does Homeowners Insurance Have To Be Escrowed?
16470 POINTSview profileDavid OsgoodAgent, Rural Mutual Insurance Co., Union Grove, WIThat is up to your mortgage lender. If they have the requirement of the homeowners insurance premium be part of the amount of monies retained in escrow then you would have to or risk being in breach of contract that could incur penalties from the mortgage lender. To the best of my knowledge most mortgage lenders do not require homeowners insurance to be escrowed.Answered on July 24, 2013flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA mortgage company will require that insurance premiums and tax payments be collected in an escrow account if the loan does not conform to certain guidelines. Under those circumstances the decision to allow you to pay the insurance premium yourself rests solely with the mortgage company. Wither the money comes from escrow or a direct payment the policy must be maintained otherwise the mortgage company can secure coverage for the residence.Answered on October 31, 2014flag this answer
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