Separating insurance and taxes from escrow

[Luke Grossmann]

Hello BP, I'm about to purchase my first rental property, and I'm considering not using an escrow account to pay my insurance and taxes. Below are the factors I'm aware of, but I welcome any and all thoughts on the matter.

Pros:
-Insurance provider offers 10% "paid in full" discount (not available after first year if paid through escrow)
-Easier to switch insurance provider down the road

Cons:
-Lender requires a one-time fee of 0.25% not to escrow ($280)
-Additional hassle of paying insurance and taxes separately