The manner in which a homeowner’s insurance premium is paid depends on the type of loan issued on the property, if there is one.


If policyholders have an FHA loan, higher-priced mortgage home or a Veterans Administration (VA) loan, they must have an escrow account. Monthly insurance payments can be added to a mortgage check. Most lenders actually prefer insurance premiums be paid out of your escrow account to ensure their investment is protected. If you have an escrow account, it is the lender’s responsibility to pay all of your tax bills in a timely fashion.

Agency or Direct

Depending on your lender and the amount being financed, it may be possible to separate your homeowner’s insurance from your mortgage payment. If there is no escrow, you may pay the insurance agency or insurance provider directly. This option is also available for policyholders without a mortgage.