How does my mortgage pay for my insurance?

If you have an escrow account, your mortgage lender collects funds as part of your monthly payment to cover insurance premiums and property taxes, then pays them on your behalf.

Your mortgage lender usually requires you to have homeowners insurance, and they often manage the payment through an escrow account. Each month, a portion of your mortgage payment goes into this account, and your lender uses it to pay your insurance premium.

Your mortgage lender may set up an escrow account, where part of your monthly mortgage payment is reserved for paying insurance. This ensures that your policy remains active and the lender is protected.

Keep track of your escrow payments to ensure your insurance premiums are paid on time. This prevents lapses in coverage, which could leave you vulnerable in case of a claim.