How Does Homeowners Insurance Escrow Work? 
An escrow account is usually setup for you when you buy a new home , and this account is used to pay your property taxes and your homeowners insurance . Your monthly payment will include our principal and interest payment to the mortgage lender , as well as 1/12 of your yearly property taxes and homeowners insurance . When payment is due , your lender will make the payment on your behalf from the escrow account . 