Is it more economical to pay for home insurance with or without escrow?
I'm trying to decide whether to pay for home insurance with escrow. Does it make more sense financially to go with this option?
Answer provided by
Answered on Mar 18, 2021
It can actually be more economical and wiser to pay for home insurance in your escrow. Paying for your home insurance in your escrow means that you will never forget to pay for insurance or allow it to lapse, since it is built right into your monthly mortgage payment.
Also, you are typically not subjected to any installment fees because your mortgage company pays the whole year upfront for the policy and then you pay that amount back in monthly payments. Conversely, if you get a monthly installment plan through a home insurance company, you will have to pay a monthly installment fee on top of the cost of the policy.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
Are zero percent car loans really a good deal?
I've heard of zero percent car loans, but they seem too good to be true. Are they all they're cracked up to be?
Mar 08, 2021
What can happen if I spend the auto insurance settlement money that's supposed go to my lienholder?
The entire amount of my insurance settlement was deposited into my bank account instead of going to my lienholder. I was owed a portion of it, but I'm wondering what would happen if I just spent it. I could really use the money right now.
May 07, 2021