Often times homeowners are unaware of how their homeowner’s insurance is being paid if their lender has set up an escrow account for their mortgage. If you are making a payment into an escrow account for your mortgage, you are also making an escrow payment to cover your property taxes and homeowner’s insurance.
- Your lender is responsible for paying both of these on your behalf when they are due.
- Lenders estimate your homeowner’s premium and property taxes annually.
- Be sure to remember that as it is an estimate, you may get a refund or pay for a shortfall at the end of the year.
- Your taxes and premiums will change over time and your escrow payment estimate will be adjusted yearly accordingly.
- Review your year-end escrow statement to ensure your bills are paid promptly and there are no mistakes. Contact your lender immediately if there are any issues
Have more questions about your homeowner’s insurance? No problem! Contact us today and we can review your current policy and make sure you have the proper coverage at the best price.
At Alpha/Omega Coverage, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. In addition, our financial division, Alpha/Omega Financial Services, offers a complimentary financial review to all new and existing clients. Just give us a call at 718-494-4440 or send us a note at Mike@insureSI.com. We want to help you meet your goals, and make sure what’s important to you is protected!
The author is providing the material and viewpoints on a generic informational basis. All references to various insurance policies, coverage terms, policy language, exclusions, definitions etc. are from a broad selection of general insurance information. It is not intended to be used for any specific policy or coverage situation. The views expressed by the author do not necessarily represent the views of the insurance companies it represents. Content has been referenced from Freddie Mac.