Is Homeowners Insurance Covered In Mortgage? 
As Tom indicated , the mortgage departments at many banks arrange to escrow monies for insurance and taxes in addition to the monthly mortgage payments . You may have heard of PITI -LRB- pronounced `` pity '' -RRB- in relation to mortgage payments . This acronym describes the four components of the mortgage payment : Principal , Interest , Taxes and Insurance . In some cases , however , homeowners may pay the insurance premium directly to the insurance broker or agent . 