Homeowners · Mortgage escrow
Escrow pays the bill. It does not choose the coverage.
Many lenders collect a monthly share of the annual homeowners premium and the property taxes, hold it, and pay those bills when they come due. That account is escrow. If the premium goes up, the next analysis usually raises the monthly payment or collects the shortage. The servicer is paying the invoice it was sent. It is not deciding whether Coverage A would rebuild the house.
Switching carriers means the new declarations have to reach the servicer, with the loan number and the mortgagee clause, before the old policy is canceled. Otherwise escrow can pay a policy you meant to leave, or decide you have none. This is not mortgage or tax advice. The consumer explanation of the account itself: what an escrow account is.
What the policy is supposed to do: homeowners coverage. Buying it before the lender does: buying home insurance in Texas. The product: Texas homeowners. After a loss, escrow is not the claim: filing a homeowners claim.
