Homeowners Insurance Escrow Shortage Help Simplifies Stress-Free Solutions
Causes of Escrow Shortages
Several factors can contribute to an escrow shortage. One common cause is an increase in property taxes, which often rise due to changes in property value assessments or local tax rates. Another factor is an increase in homeowners insurance premiums, which can fluctuate based on risk assessments, claims history, or changes in coverage. Additionally, initial escrow calculations during mortgage setup might underestimate the required funds, leading to a shortfall1.