How Is Property Insurance Billed?

Purchase Property Insurance

• You can purchase property insurance from local or national insurance companies. Insurance agents are trained to provide you coverage options and rates to suit your needs. If you have a mortgage on your home or business property, your mortgage lender, as a temporary joint owner of the property, requires that you purchase property insurance. The level of coverage required is determined by your mortgage lender.
  
  

Insurance Companies

• Contract your state insurance office for insurance companies available in your area. A link is also available below to search for an insurance company in your state.
  
  

Direct Payment

• If you don't have a mortgage or prefer to pay your insurance provider directly you can do so via direct payment. A direct payment system can be set up between you and your insurance company. In some cases, a discount is offered for full payment as a lump-sum amount.
  
  

As Part of Your Mortgage Payment

• It's common practice to include property insurance payments in your mortgage payment. Property insurance payments are applied to your escrow account. An escrow account is a fund held by a third party to automatically disperse payments. Payments are later sent to your insurance company at the time they're due. Including your insurance premium in your mortgage is optional.
  
  

Benefits

• The benefit of including your property insurance payment in your mortgage payment is that you don't have to worry about whether it's paid on time. It's a hassle-free payment option.