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Is my home insurance included in my mortgage?
I purchased my house last year. I just got a notice from my home insurance company that my policy will cancel if I don’t pay the renewal balance. I’m confused because I thought home insurance was included with my mortgage. Is home insurance usually included in your mortgage?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congrats on the home!
Home insurance
and mortgages are confusing, but typically, your home insurance is paid by your mortgage company. When you first purchased your home, your lender set up an escrow account for you. When you closed, part of your down payment went towards your home insurance and property taxes for the year.
Every time you make a mortgage payment, a bit of that payment goes to your escrow account to ensure you have enough money to pay for them throughout the year. Often, if your lender thinks there could be a shortage, they’ll request you pay an additional sum or add a specific amount to your monthly payments.
You likely received a notice from your home insurance company because your lender hasn’t processed the payment yet. Insurance companies said renewal notices out one to two months prior. Mortgage lenders often don’t make payments until a week or two from the due date.
Because of this, it’s likely your mortgage company hasn’t sent the payment out yet. However, it’s still good to call both your insurance company and your lender. By contacting both parties, you’ll ensure your insurance won’t cancel and your mortgage company makes the payment on time.
Since your policy is up for renewal, consider taking some time to shop around. You may be able to find a lower rate with another company. If you want cheap home insurance quotes fast, go to
Jerry
. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and will even help you cancel your old policy.View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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