Is Homeowners Insurance Paid Up Front? 
In Connecticut , when one is buying a home , the mortgage companies will typically require the first year 's premium to be fully paid prior to closing . If the future payments are then to be made from an escrow account , that will be done for the following year upon renewal . Even if you are paying the Insurance Company directly , however , each payment that you make is for coverage moving forward . If you pay the full amount on renewal , you are paid for the full 12 month policy period beginning at the renewal date . If you have a monthly pay option , then each payment that you make is for a months ' worth of coverage . So in effect , you are paying for future continuous coverage or paying `` up front '' . 