How Does Home Insurance Escrow Work? 
Some banks these days require that your Homeowners Insurance be paid by them froman escrow account . If that is the case , then when you are closing on your home and obtaining insurance , they will require you to pay your insurance professional an amount equal to the full first year 's premium . The policy will then be set up to bill your mortgage company upon each renewal . The monthly payments that you make to your mortgage company , in addition to principal and interest , will include an amount for the next renewal on your Homeowners Insurance . Your insurance company will bill your mortgage company at the renewal and the annual premium will then be paid by your mortgage company from your escrow account . 