Homeowners insurance?

[Anonymous]

Just a quick question on Homeowners insurance.  It is my understanding that with an FHA loan homeowners insurance must be impounded.  Is this correct and if so, so I have to go through the escrow/mortgage company or can I chose whoever I like for that insurance?

[Anonymous]

My loan is not FHA so i don't know if this helps you, but my bank also required that my homeowners insurance be included in my mortgage.  We were able to choose whoever we wanted, and then insurance company worked with my lender to included the costs.  We did need to pay the first year up front and then the renewals will be in our monthly mortgage amount.  This must be pretty common now since my insurance company asked for my mortgage information before I could mention the requirement.

[Anonymous]

Im closing tomorrow on my FHA loan.  You can use any homeowners insurance company you want.  Mine asked for the loan officers info so they could make sure im getting the required coverage.  Then they forward the quote to escrow to setup the impound stuff and figure out what I have to pay up front.

Be sure to shop lots of insurance companies.  I got quotes ranging from $500-1,000 from at least 8 different companies.   Also check into multi-policy discounts which can help a lot.

[Anonymous]

Don't forget to review you homeowners policy annually. Because it's on escrow don't mean you can't change coverage or companies should you need to in the future. The changes have to be made before your premium is due... I review mine about 2 months before the premium is due.