Guide · Home insurance

Home insurance and your mortgage

Lenders usually require insurance on a mortgaged home. Understanding escrow and lender rules helps you avoid gaps.

4 min read · Last reviewed 2026-10

What this means in your state

Choose your state

Select your state to see how this applies where you live.

Your state

What lenders typically require

Property insurance on the home for as long as the loan is outstanding.
Your lender listed on the policy as a mortgagee, so it receives notices and claim payments that affect its interest.
Flood insurance if the home is in a high-risk flood zone and the loan is federally backed or regulated. Ask your lender about its specific rules.

Escrow in plain English

Many lenders collect part of your insurance premium with each mortgage payment and hold it in an escrow account, then pay the insurer when the bill is due. If premiums rise, your monthly payment can change.

If coverage lapses

If your coverage lapses, a lender may buy a policy on your behalf and charge you for it. Those policies are designed to protect the lender's interest and can cost more while protecting you less. Keep your own policy active and send proof of renewal if your lender asks.

Checklist

Confirm that your lender's name and loan number are on the policy.
Review your dwelling limit against your rebuilding cost each year.
Ask whether any event, such as wind or hail, has a separate deductible.
Keep copies of your policy and renewal notices.

Questions

Is the amount my lender requires enough?

Not necessarily. The lender's requirement protects its interest. Compare your limits with your own rebuilding costs and belongings.

Who do I contact about escrow changes?

Your loan servicer. Your insurer can confirm premium and billing details.

Sources

Informational only. Rules and policy terms change and differ by state and insurer. Confirm details with your policy, your insurer or your state insurance department.

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