Escrow analysis and new homeowner's insurance (premium, rate, payment, company)

[rb314]

We just received our escrow analysis, and we were shocked to find out that our homeowner's insurance rate went up by 25% eight months ago with no notice from the insurance company nor from our mortgage holder. By the way, it was Farmers, in case you're wondering. That is a whole other subject and something I won't go into right now! Anyway, the new Farmers rate, plus the escrow shortage it created, was going to add about $220 per month to our mortgage payment. Even if we paid the shortage, our new mortgage payment was calculated using that inflated insurance premium. Needless to say, we immediately went out and shopped new insurance, and found a decent policy for which we will pay about 37% less. That said, here is my question: Can we request that our mortgage company re-balance our escrow account based on the NEW insurance payment? Mortgage is with Chase (also a whole other subject!). Are mortgage holders normally willing to do that? Or is this going to be another battle? Thanks.

[ilikepizza]

You can request they do an escrow analysis.

[Modification Specialist]

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After the east coast got hit with the hurricanes 2011 and 2012. The following year insurance increased substantially. Shop around, be sure to ask about a blanket policy combining both your home and car insurance.

Once you have your new insurance contact your lender, it takes about 30 days for the new escrows to be adjusted in your payment.

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