Is the homeowners insurance you pay through escrow tax deductible?

What your escrow account does

Your lender collects part of each monthly payment and holds it to pay property taxes and homeowners insurance when they come due. The lender pays your insurer, but you are still the one paying for a personal policy, so the tax treatment does not change.

What Form 1098 shows

Your lender's Form 1098 reports mortgage interest and often the property taxes paid from escrow. Those two items may be deductible if you itemize, with property taxes subject to the federal cap on state and local tax deductions. Insurance premiums paid from escrow are not deductible for your own home.

Exceptions

• Rental property, where premiums are a rental expense.
• The business share of a qualifying home office.
• Private mortgage insurance, which follows separate rules that have changed over time.

Why your escrow payment went up

Escrow increases often come from higher insurance premiums. An older roof, a recent claim, or a rate change across Georgia can all push premiums up, and the lender then raises your monthly payment to cover it, sometimes with a shortage charge. If your roof's age is driving the increase, a documented replacement can help at the next renewal. See roof age and insurance. If a claim check arrives with your lender's name on it, see mortgage company insurance checks.

This is general information, not tax advice.