House insurance for new house

sarah_ann81

Buying our first house in a couple weeks. We got our insurance quote but the insurance guy said we had to pay the entire first year up front, is this right? I thought it was included in our monthly payment! Help!

englishtrish1

Get another quote. On our rental house we chose to escrow the payment, on our resident we pay it up front. But we have never been forced to do either.

JoanE2012

We had to pay the entire year upfront too.  It was required.  For us, it's a yearly payment.....which is why they need the entire year up front.  Our mortgage company is not going to be sending payments each month to the insurance company.

After the initial upfront first year, it was done through escrow and we don't have to worry about it.  Year 2 is paid on the anniversary with money saved in the escrow.

MrsAshleyH10

Most mortgage companies want you to show a full year of insurance paid upfront for closing. 

It sounds like you are escrowing as well, so in addition to paying the first year in full, you will also be paying monthly into your escrow to pay your second year's premium at renewal. 

Xstatic3333

We had to pay a full year upfront also, before closing. Our credit union doesn't escrow for insurance, so we put our payment aside each month. It's really a small expense relative to the mortgage and property taxes.

short+sassy

Alas, even if your mortgager was going to be paying for the first year of insurance, they would just charge that to you during closing for your escrow account.  So it essentially comes out the same way.

Just be glad you don't live in NOLA, like me.  My homeowner's is $3100/year.  Which doesn't count flood insurance...that's another $500/year.