It can be paid directly by you, or it can be held “in escrow” and paid by your lender. Ultimately it doesn’t make a difference financially, but it does mean logistically you either are paying one bill vs 3+.
It also comes at the risk that your lender fucking up could result in, best case scenario, a paperwork nightmare and maybe a small fee with your insurance/county/whatever, worst case scenario, the cancellation of a policy you may or may not be able to get back into easily.