In this video, we answer an important question many homeowners ask: Can flood insurance be escrowed? The short answer is yes—flood insurance can be escrowed, but it depends on your lender and loan requirements.
If you have a mortgage on your home, your lender may require flood insurance and choose to include the premium in your escrow account, along with property taxes and homeowners insurance. This allows the lender to collect monthly payments and pay the flood insurance bill on your behalf when it’s due. Escrowing flood insurance is common for homes located in Special Flood Hazard Areas (SFHAs), especially when a federally backed mortgage is involved.
In this video, The Flood Insurance Guru explains when flood insurance escrow is required, when it’s optional, and what homeowners should know before setting up escrow. We also discuss how escrow affects your monthly mortgage payment and what happens if your lender does not escrow flood insurance.
Watch the full video to understand how flood insurance escrow works and how it may impact your home loan and budgeting decisions.
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