I have home owner's insurance with auto.

I also pay $200ish a month as part of my mortgage (Hazard Ins).


Why?

Do I have to pay both?


****UPDATE****

I'm an idiot. That's not the update. I tried to look up exactly what I was paying for my "2nd" home owners insurance through Farmers and I got this...

"Mortgagee Account Statement - Account is mortgagee pay. Statement is not available."

So it appears that my bank's been covering my home owner's insurance through my mortgage.

I am a noob at home-owning.

Now I wonder why my car insurance is so damn high?

$214 a month for two cars. Ugh!!!!

Is the insurance with your mortgage actual property insurance or PMI?


https://www.zillow.com/mortgage-learning/private-mortgage-insurance/

Actual insurance...

Quote:

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G. Initial Escrow Payment at Closing $6,453.45
01 - Homeowner's Insurance $208.84 per month for 5 mo. $1,044.20
02 - Mortgage Insurance per month for mo.
03 - Property Taxes $228.10 per month for 13 mo. $2,965.30
04 - School Property Tax $252.26 per month for 13 mo. $3,279.38

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We had been paying hazard and PMI on our first FHA loan, but this is a refinance and it's a conventional loan.

I see something like this a lot in my bankruptcy practice. The homeowner misses or ignores the mailed notice that the mortgage company doesn't have proof of an active homeowners policy. If no proof is produced, then the mortgage company buys a hazard policy to protect their interest. Later, the owner notices the double insurance.

Usually, proof of continuous coverage will result in a refund of the premiums paid towards the mortgage companies policy.

Raptor said:

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Actual insurance...

Quote:

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G. Initial Escrow Payment at Closing $6,453.45
01 - Homeowner's Insurance $208.84 per month for 5 mo. $1,044.20
02 - Mortgage Insurance per month for mo.
03 - Property Taxes $228.10 per month for 13 mo. $2,965.30
04 - School Property Tax $252.26 per month for 13 mo. $3,279.38

---

We had been paying hazard and PMI on our first FHA loan, but this is a refinance and it's a conventional loan.

---

Hazard and PMI are not the same.

DadAG10 said:

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Raptor said:

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Actual insurance...

Quote:

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G. Initial Escrow Payment at Closing $6,453.45
01 - Homeowner's Insurance $208.84 per month for 5 mo. $1,044.20
02 - Mortgage Insurance per month for mo.
03 - Property Taxes $228.10 per month for 13 mo. $2,965.30
04 - School Property Tax $252.26 per month for 13 mo. $3,279.38

---

We had been paying hazard and PMI on our first FHA loan, but this is a refinance and it's a conventional loan.

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Hazard and PMI are not the same.

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I understand that. We had been paying both hazard and PMI on our first FHA loan.


We recently refinanced and I saw them listed out for the first time. I had no idea I was paying insurance twice for the same thing. We are not paying a PMI on the new loan.

Updated in OP.

Based upon what you've posted it looks like you probably signed for a loan with escrows for insurance and taxes and started paying for the total premium of your homeowner's/auto policy when you should only be paying for the auto portion of your policy.


-Make sure that your mortgage company has your insurance company listed as your provider and that there hasn't been a lapse in coverage.
-Make sure that your insurance company has your new mortgage lender listed as the mortgagee and that they have the homeowner's portion listed as billed to lender rather than owner.

My home insurance provider shows that I have home insurance with the premiums listed as well, but yeh, there is no balance, and it says 'paid by mortgagee'.

Noob mistake.

$100/car/month is not that much, assuming they aren't 2 door sedans from the 90s.

Cars are a lot more than they used to be. I paid like $60 a month for my car insurance back in college; well my truck is about 3x the price of my car in college. Makes $100/mo seem like a good deal.

62strat said:

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My home insurance provider shows that I have home insurance with the premiums listed as well, but yeh, there is no balance, and it says 'paid by mortgagee'.

Noob mistake.

$100/car/month is not that much, assuming they aren't 2 door sedans from the 90s.

Cars are a lot more than they used to be. I paid like $60 a month for my car insurance back in college; well my truck is about 3x the price of my car in college. Makes $100/mo seem like a good deal.

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So I'm doing okay paying $214 a month for cars and $208 a month for my house?

Raptor said:

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62strat said:

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My home insurance provider shows that I have home insurance with the premiums listed as well, but yeh, there is no balance, and it says 'paid by mortgagee'.

Noob mistake.

$100/car/month is not that much, assuming they aren't 2 door sedans from the 90s.

Cars are a lot more than they used to be. I paid like $60 a month for my car insurance back in college; well my truck is about 3x the price of my car in college. Makes $100/mo seem like a good deal.

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So I'm doing okay paying $214 a month for cars and $208 a month for my house?

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Check your coverages, and it never hurts to look around. I think Liere is or was a sponsor on here. When I switched from Farmers to USAA, I found savings above just the better rates by correcting the value for the house. Whether it was my fault or my old idiot agent, the house was insured for considerably more than the replacement value.

Will do, thanks!

Raptor said:

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62strat said:

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My home insurance provider shows that I have home insurance with the premiums listed as well, but yeh, there is no balance, and it says 'paid by mortgagee'.

Noob mistake.

$100/car/month is not that much, assuming they aren't 2 door sedans from the 90s.

Cars are a lot more than they used to be. I paid like $60 a month for my car insurance back in college; well my truck is about 3x the price of my car in college. Makes $100/mo seem like a good deal.

---

So I'm doing okay paying $214 a month for cars and $208 a month for my house?

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Depends on coverage/deductibles, and location. My home insurance is $100 a month with $500 deductible, but it's in Colorado.

My vehicle deduct. is $250.

Raptor said:

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62strat said:

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My home insurance provider shows that I have home insurance with the premiums listed as well, but yeh, there is no balance, and it says 'paid by mortgagee'.

Noob mistake.

$100/car/month is not that much, assuming they aren't 2 door sedans from the 90s.

Cars are a lot more than they used to be. I paid like $60 a month for my car insurance back in college; well my truck is about 3x the price of my car in college. Makes $100/mo seem like a good deal.

---

So I'm doing okay paying $214 a month for cars and $208 a month for my house?

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If you're over 30 years old with no tickets/accidents then $214/month is too much. You should be getting all the discounts - multi-car, homeowner, married, etc.. I do this for a living

That $214 is 2 cars.. I don't think that is too crazy high, but yeh I think we pay about $170 for 2 cars.

Perhaps this was covered, but to be clear, when you close on a house, there are pre-paids. You buy insurance in advance, so you prepay for one year (usually; some mortgages or title cos may work differently) and then escrow each month to pay the NEXT year.

62strat said:

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That $214 is 2 cars.. I don't think that is too crazy high, but yeh I think we pay about $170 for 2 cars.

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We pay $1000/year for 2 cars. That's with max limits as that's what's required since I drive my vehicle for work

agdaddy04 said:

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62strat said:

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That $214 is 2 cars.. I don't think that is too crazy high, but yeh I think we pay about $170 for 2 cars.

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We pay $1000/year for 2 cars. That's with max limits as that's what's required since I drive my vehicle for work

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Again, it depends on your age, and discounts you receive. A big thing is tickets/accidents. And even though it seems just like a stupid advertisement, Progressive's Flo is right - discount, discount, discount.

An acquaintance of mine called yesterday to say that his 6-month Allstate premium went up to $2,400 because he added his 16-year-old daughter. I quoted Safeco and it was $1,664. He can't believe it. I say shop your auto insurance every year.

agdaddy04 said:

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62strat said:

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That $214 is 2 cars.. I don't think that is too crazy high, but yeh I think we pay about $170 for 2 cars.

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We pay $1000/year for 2 cars. That's with max limits as that's what's required since I drive my vehicle for work

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There are so many variables in that it's pointless to compare. What kind of car and how old? What is your rental reimbursement? Roadside coverage? Deductible? How old are you? How many miles do you drive?

On and on. And what is 'max' limits? You mean the max your insurance company offers? Insurance companies differ in what they'll offer in liability coverage. What is yours?

I'm going to shop around. I feel like I can get a better deal.

And before I throw out too much info, can I trust you?

Raptor said:

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I'm going to shop around. I feel like I can get a better deal.

And before I throw out too much info, can I trust you?

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LOL. I'll give you a quote and don't care what you do with it. At least you'll know then.

Called around and found that our car payments (didn't realize all the cover we had), are very reasonable.

Same for home insurance. Thanks to everyone who chimes in and offered advice.