If I receive a refund check from a canceled homeowner’s policy, can I keep the check or do I need to send it to my escrow account?

Can I keep it since I need it and at the moment have over $2000 in the account?

Asked on October 30, 2014 under Insurance Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You can cash any check that is in your name.  As far as whether you should send it to escrow or not--that is between you and your mortgage company.  If your agreement with them requires the forwarding of any cancelled policies, then you would need to do so... but most simply require you to keep sufficient funds on hand to pay your insurance at the end of the year.  If you do not have sufficient funds, then they will increase your monthly payment to offset for the insufficient funds in your escrow account. 


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