Our bank is going to set up escrow accounts for customers who have not paid their taxes. The question is: Can the customer pay their homeowners insurance on their own or does the insurance have to be escrowed also. Appreciate anyone help.

Anon, I've been trying to find an answer and I think that you do not have to escrow the homeowners insurance. But...if the loan is in a flood zone, you may have to escrow the flood. I can't get a handle on this part of the issue because of the "voluntary" exclusion- sorry.

Edit: I'm just learning escrow so don't take this as an answer - hopefully someone with a clue will set us both straight.

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I think that you do not have to escrow the homeowners insurance. But...if the loan is in a flood zone, you may have to escrow the flood

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I agree.