Getting Cash-Back on Home Insurance

Quick details:

  • Earn rewards or get some cash back by paying your home insurance with a credit card
  • Most home insurance companies don’t care how you pay home insurance.
  • The bank which holds your mortgage has rules around if you need to escrow your taxes/insurance

Annual Value:  $48


  • $48 from home insurance (2% cash back x $2400/year)

This idea came up when I was writing about how I use the Fidelity card for 2% on as many purchases as I can (that normally you don’t think about).  It’s fairly simple – if I’m just paying an escrow every month for home insurance, why don’t I pay that directly to the insurance company, and then at least get some rewards from it.

I emailed my agent Steve Riebel (he’s awesome), and got a quick response:  “absolutely, if your bank allows it.”  I called up Wells Fargo, and in 5 minutes got my answer – no problem.  There were however some requirements (each bank and loan is probably different):

  • Under 80% loan-to-value (probably the biggest hurdle for folks).
  • No late payments for 24 months.
  • Escrow is up-to-date and has a positive balance.
  • You’re not on a payment plan of some kind.

In general, you need to be in good standing and not in trouble with your loan.  With that said, they quickly turned the escrow collection off for insurance, I gave Steve a quick call to make sure we were all set, and with around 10 minutes of effort all-in, we’ll get $5o/year back for the foreseeable future.

Going further, if I keep this on the Fidelity card, which puts everything back in to a retirement investment account, this $50 should just grow over time, which is great.  If we pay around the same cost for insurance for the next 30 years, this should grow to around $6,000 – not bad at all.  That’s a really fun vacation for the family when we reach that point, by just spending 10 minutes now.

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