Most people lead busy lives. When it comes to paying bills, there are some you may get away with missing a payment. As an example, if you forget to pay your cable bill, you may be without something to watch on TV for a few hours. If, however, you do not have the money to pay for insurance for your home, you can find yourself in trouble.
The biggest problem with not paying insurance on time is it will be canceled. If this happens, you will be at risk of losing your home during a disaster and not having insurance to cover repairs or replacement.
The second reason is since most lenders require you to have homeowners insurance, you could lose your home loan. Paying into an escrow account ensures you have the funds to purchase the policy each year.