An Escrow account is a separate account held by the lender or bank when you close a mortgage with them. Do you know how to open and use an Escrow Account? Keep reading to learn!

Although it is not required, it may help you cover some expenses, including home insurance, mortgage insurance, and real estate taxes.

Some accounts can be held by yourself. But in most cases, as mentioned before, escrow accounts are handled by the lender on your behalf.

Also, some accounts allow you to earn interest. 

In some states, having an escrow account is required. In others, you may choose whether you want to have one or not.

An escrow account may be a great thing, especially for those who possibly forget to pay their homeowners insurance.

Keep reading to learn how to use it!

In summary, you don’t need to open or apply to an escrow account since a lender or a bank will open it on your behalf.

However, if you are the person responsible for it, you can simply contact a financial institution and ask to open it.

Also, if this is your case, you can search for an account with benefits.

However, in most cases, you don’t need to handle the process at all.

So, all you must do is choose a home insurance that fits your needs and goals. 

Home insurance or homeowners insurance protects your property and belongings in case of specific and unexpected situations.

Basically, it covers you in case of accidents inside your property.

Depending on the policy you sign up for, you will be able to cover even personal liability and medical expenses.

Having an escrow account guarantees that your insurance will be an expense to be covered.

Therefore, it is time to meet some of the insurance companies we have selected for you.  

One of the best available on the market is Progressive Home Insurance.

This company offers comprehensive types of coverage at affordable prices. Also, it provides fantastic customer service and tools so you can get an amazing user experience.

In addition, you can customize your insurance as you want and need.

Progressive features articles that help you find out more about the relationship between homeowners insurance and escrow account, too.

Keep reading our next post to learn how Progressive may be a good option for you.