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Homeowners insurance quotes?

is it true you have to pay upfront 1 year homeowners insurance when buying a home.

Only if you have a mortgage company that is planning on escrowing for taxes and insurance. It's not the insurance company that requires that - it's the mortgage company. Source(s): agent, 21+ years

Yes, but not because the insurance company requires it (some do, most do not). It's because your mortgage company requires it if you escrow for insurance. You pay the full first year up front, then they collect a few more months at closing to start your escrow account so they can pay your next year's premium when it comes due. The b alance is part of your monthly payments. If your insurance is higher the next year they will go ahead and pay it, then increase your payments the next year to make up for the difference.

So, for example, if your home insurance is $1200 for the year:

You'd pay your insurance agent $1200 to pay the first year.

You'd pay $200 or $300 more at closing (depending onwhether they wanted 2 months or 3 months) to start the escrow, which collects to pay the next year's premium.

You'd pay $100 a month as part of your mortgage payment to pay the blalance of the $1200 they ASSUME your next year's home insurance premium will be.

They then pay your renewal and adjust your payment accordingly.
Waive escrow and pay it monthly on your own. Here is a great company to look into for home owners insurance.

Contact: Beth Boisseau
Company: J.B. Lloyd & Associates, LLC
5228 Village Creek Dr.
Suite 101
Plano, TX. 75093
Phone: (972) 322-4650
http://www.lloyd-ins.com/
You have to escrow 1 years worth (if your mortgage company makes you have an escrow account). This is different from paying one years insurance in the sense that the money in the escrow account is still your money.

But still, it's one year out of your pocket, so it seems like you are paying it.