Escrow Option Clause
You have the option to escrow all premiums and fees for
the payment on your flood insurance policy that covers any residential
building or mobile home that is located in an area with special flood
hazards and that secures your loan. If you choose this option:
- Your payments will be deposited in an escrow account
to be paid to the flood insurance provider.
- The escrow amount for flood insurance will be added
to the regular mortgage payment that you make to your lender or its
servicer.
- The payments you make into the escrow account will
accumulate over time and the funds will be used to pay your flood
insurance policy when your lender or servicer receives a notice from
your flood insurance provider that the flood insurance premium is
due.
To choose this option, follow the instructions below.
If you have any questions about the option, contact [Insert Name of
Lender or Servicer] at [Insert Contact Information].
[Insert Instructions for Selecting to Escrow]
