Is Mortage Included in Home Insurance? Let's Find Out!

Home Insurance and Mortgage

Home insurance is not included in your mortgage. It’s a separate insurance policy apart from your loan agreement.

Mortgage Lenders and Home Insurance

However, mortgage lenders can require you to pay your home insurance using an escrow account.

Escrow Account

An escrow account is an account your lender or mortgage servicing company uses to pay critical, recurring, property-related expenses.

Mortgage Escrow Account

A mortgage escrow account typically collects and holds funds to pay your homeowners insurance and property taxes.

Benefits of Escrow Account

An escrow account enables you to spread out insurance and tax payments instead of paying them with lump sums every year.