Can I Pay My Homeowners Insurance Myself?
You usually pay homeowners insurance through an escrow account, but if your lender allows, you can also pay it yourself. Taking control of insurance payments can let you save money and control payment methods and schedules.
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By Mark Fitzpatrick
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Head of Insurance, MoneyGeek
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including [CNBC](https://www.cnbc.com/2020/04/15/cant-keep-up-with-insurance-premiums-heres-what-to-do.html), [NBC News](https://www.nbcnews.com/business/autos/flooded-cars-are-problem-their-owners-future-car-buyers-n1278493) and [Mashable](https://mashable.com/article/tesla-insurance-rates). Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
Edited by Casie McCoskeyCasie McCoskey is a professional editor passionate about providing people with accessible information on personal finance. Before MoneyGeek, she worked in the legal field, drafting and editing briefs and motions.
MF
By Mark Fitzpatrick
MF
Head of Insurance, MoneyGeek
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including [CNBC](https://www.cnbc.com/2020/04/15/cant-keep-up-with-insurance-premiums-heres-what-to-do.html), [NBC News](https://www.nbcnews.com/business/autos/flooded-cars-are-problem-their-owners-future-car-buyers-n1278493) and [Mashable](https://mashable.com/article/tesla-insurance-rates). Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
Edited by Casie McCoskeyCasie McCoskey is a professional editor passionate about providing people with accessible information on personal finance. Before MoneyGeek, she worked in the legal field, drafting and editing briefs and motions.
Updated: May 22, 2024
Advertising & Editorial Disclosure
When it comes to homeowners insurance, paying it directly to your insurer offers you greater control over your finances. While most homeowners usually pay through an escrow account, understanding the advantages of self-payment can allow you to manage your homeowners insurance expenses better. Discover the possibilities and evaluate if paying premiums directly to your insurer aligns with your needs.
When you buy a home, most mortgage lenders require you to open an escrow account where you must place funds to pay for mortgage-related expenses such as your home insurance policy. Your lender will use funds from your escrow to pay for your policy, which you can pay in a lump sum to free up time and set up your home. However, it’s not the only way to pay premiums. If your lender allows it, you can pay premiums directly to the insurer.
By paying your insurer independently, you can gain more control and flexibility in handling your expenses. It also offers a deeper understanding of your policy, such as what your premiums are, when your bill is due and what potential savings opportunities there are.
For instance, you can choose to pay monthly, quarterly or yearly, depending on what suits your needs best. If you can afford it, paying your policy in full can even get you a discount. When the time comes for you to renew or shop for a new home insurance policy, being fully aware of your premium can help you explore better coverage or rates.
When paying for your homeowners insurance policy, you have multiple options to handle the payment process yourself. Various avenues are available to suit your preferences, from traditional methods like writing a check or utilizing a credit card to more modern alternatives such as online payments or automatic bank transfers. However, keep in mind that payment methods can vary from insurer to insurer.
Payment Method DescriptionAutomated Payments via Credit or Debit
With automated payments, your checking or savings account is automatically debited on the due date of your homeowners insurance payment. Whether you prefer monthly payments or the convenience of paying in full, this method ensures seamless transactions.
Some insurers offer one-time payment systems through their website, where you must enter your bank or credit card information, billing account information and policy information each time.
Insurers may also offer a hotline to pay your premiums, where you can pay via your checking, savings or debit/credit card account.
If you want to pay by check, you can write one out and send it via mail to your insurer. You can typically find your insurer’s address on your policy details or on their site.
Depending on the insurer, you can also submit payment through a financial institution or bill-payer service. To complete the transaction, you will typically need to provide essential details such as your billing account number, payment amount, payment due date and the payment processing address of your insurer.
If your insurer has a mobile app, you can pay thru the app by connecting your debit/credit card or through online transfers.
If you don't want to deal with payments, your homeowners insurance can seamlessly integrate into your mortgage plan by having your escrow account make your payments. While not every homeowner is required to have it, an escrow account can help you maintain your homeowners insurance coverage by ensuring you have allocated funds to meet your premium obligations, facilitating timely payments and the uninterrupted protection of your homes.
An escrow account acts as a secure middleman in real estate transactions, holding funds and important documents until everyone fulfills their commitments. Your mortgage lender typically sets this up.
In the case of homeowners insurance, a portion of your mortgage payment is set aside in the escrow account to cover your insurance premiums. When it's time to pay your home insurance, the escrow agent releases the funds to your insurance provider. This setup ensures that payments are made on time, giving homeowners and lenders peace of mind while safeguarding the home.
However, escrow accounts often collect more funds than necessary to ensure adequate coverage. This excess amount remains in the account as a buffer, which means you may be paying more than your actual premium. While this is not a disadvantage, it can be challenging to manage if you're keeping an eye on your budget.
When paying for home insurance, paying for it yourself or going through your escrow account offers distinct advantages. Understanding how homeowners insurance is paid and the benefits of different ways can help you decide which one suits your needs best.
Choosing the payment method that best fits your financial profile will help you throughout your home ownership.
It's common to have questions about the intricate details of insurance coverage. Our answers to frequently asked questions can help shed light on this essential topic.
Does escrow pay for home insurance?Yes, escrow can pay for home insurance. When you have an escrow account, your mortgage lender collects your homeowners insurance premiums monthly and pays the annual premium to the insurance company when it’s due.
Can I remove my home insurance from escrow?Yes, it is possible to remove your home insurance from escrow. However, you'll need to request this change from your lender, and approval depends on your mortgage agreement and possibly your payment history.
How do you change homeowners insurance with an escrow account?To change homeowners insurance with an escrow account, first purchase your new policy, ensuring it goes into effect before your current one expires. Then, inform your mortgage lender of the change and provide them with your new insurance policy details so they can adjust the escrow payments accordingly.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
