Your escrow account funds may also be used to make payments for your homeowner's insurance premiums, and--if you are required to carry it--your private mortgage insurance (PMI) payments. You can learn about these types of insurance below.
If there are any changes in your insurance policy or carrier, please let us know immediately by calling 855-430-8489.
You can also upload and obtain your current coverage information by visiting Mycoverageinfo.com/usaa at any time.
As a homeowner, typically—though not in every case— you're required to have enough insurance to cover the outstanding principal balance on your loan or the replacement cost/value of the improvements on your property, whichever is less. For example, if you owe $80,000 on your loan and the improvements on your property are worth $100,000, you typically need at least $80,000 worth of insurance coverage. Your insurance requirements may vary depending on the state where your property is located. Please contact your insurance agency to verify your coverage requirements. The company underwriting your homeowner's policy (your insurance agency), must meet minimum rating standards as determined by USAA. The following Mortgagee Clause must appear on your required insurance policy:
USAA Federal Savings Bank
Its Successors And Or Assigns
P.O. Box 7729
Springfield, OH 45501-7729
As a homeowner, you're required to have standard homeowner's or hazard insurance. Depending on where you live, you may also be required to have additional types of coverage. Common additional coverage types appear below. Please contact your insurance agent to verify your specific coverage requirements.
Required if you live in an area having special flood hazards. This is determined based on flooding within the last 100 years. If you are required to have a flood insurance policy, it needs to meet the lowest of the following:
- The outstanding principal balance of your loan.
- The maximum amount allowed through the National Flood Insurance Program (NFIP), which is $250,000. Flood insurance coverage under the NFIP is limited to the building or mobile home and any personal property that secures your loan and not the land itself, or
- The insurable value of the structure, which is the overall value of the property minus the value of the land.
Required in high-risk areas like the Gulf Coast states, Hawaii and other areas.
Mine Subsidence Insurance
May be required for people living in an area at high risk for high subsidence, which is a movement of the ground surface in areas overlying underground mines, but will not be paid through your Escrow account.
Not required, and is carried on a voluntary basis. If you purchase earthquake insurance and want it included in your escrow payments you need to notify your servicer.
Homeowner Association Insurance
May be required if you live in a condo townhome. This is held by the property association and paid for as part of your HOA dues.
Not required, and is carried on a voluntary basis. It covers the contents of your home, not the home itself. Contents insurance can't be included in escrow.
Private Mortgage Insurance (PMI)
Depending on your loan, if you put less than 20% down, you might be required to have Private Mortgage Insurance (PMI). When you've reached 20% equity in your home, you can request to have PMI canceled. In order to cancel PMI, certain factors apply. Here are the major ones:
- The loan needs to have reached the automatic termination date listed on the PMI Disclosure Statement you received at closing or, based on actual payments, you must have reached 20% equity in your home.
- In some cases, an appraisal may be required to make sure your home hasn't declined in value. The appraisal must be from an appraiser approved by USAA and performed within 90 days of the request to cancel PMI.
- Your loan must be current and cannot have been 30 days late in the last 12 months or 60 days late in the last 24 months.
USAA Federal Savings Bank
Lake Vista 4
800 State Highway 121 Bypass
Lewisville, TX 75067
Please call 855-430-8489 with any questions.
All requests by letter or fax must include the loan number, request, date and signature(s) of borrower(s).
Other restrictions may apply.
Property Insurance Claims
If your home suffered casualty damage and your insurance company has issued an insurance claim check, the check may be payable jointly to the policyholder or holders (also known as you) and the lienholder or holders (us). When a check is presented to USAA as the lienholder for endorsement, we may either:
- Deposit the check and distribute the proceeds in increments as the repairs are completed.
- Endorse the check and return it to you.