When your home insurance is paid out of escrow, it means that your mortgage company manages your insurance payments on your behalf. Each month, you contribute to an escrow account as part of your mortgage payment. This account covers not only your mortgage but also property taxes and homeowners insurance. Your lender will pay the insurance premium directly to the insurance company upfront, and you will repay that amount through your monthly mortgage payments. This arrangement helps ensure that your insurance is always current and protects your investment in the home.