You found the house.
Your offer was accepted.
The inspection is complete.
And now you’re working your way toward closing day.
Somewhere in the middle of mortgage paperwork, inspections, appraisals, and moving plans comes another important item:
Homeowners insurance.
If you’re financing your new home, your lender will typically require proof of homeowners insurance before closing.
But when should you actually start shopping for it?
Our advice: Don’t wait until the week of closing.
Here’s what new homebuyers should know.
When Should I Start Shopping for Homeowners Insurance?
Once your offer has been accepted and you know you’re moving forward with the purchase, it’s a good time to start the insurance conversation.
You don’t necessarily need to purchase a policy immediately.
But starting early gives your insurance agent time to gather information about the property, review your coverage needs, obtain quotes, and address potential issues before they become last-minute problems.
Buying a house can already be stressful.
Your homeowners insurance shouldn’t add to it.
Why Does Your Mortgage Company Care About Your Insurance?
If you’re financing the home, your mortgage lender has a financial interest in the property.
That’s why lenders generally require homeowners insurance.
Before closing, your lender or mortgage company may need documentation showing that an appropriate policy will be in place when you take ownership of the home.
Your insurance agency can typically work with your lender or mortgage professional to provide the necessary insurance documentation.
What Information Will Your Insurance Agent Need?
Your insurance agent may ask for information about both you and the property.
That could include:
- Property address
- Expected closing date
- Mortgage company information
- Names of the buyers
- Age of the home
- Roof information
- Heating and electrical systems
- Square footage
- Construction type
- Recent renovations or updates
- Additional structures on the property
Some of this information may be available through public records or other resources, while other details may come from you, your Realtor, or the home inspection.
The more accurate the information, the better your agent can evaluate the home’s insurance needs.
The Cheapest Homeowners Policy Isn’t Necessarily the Best One
When you’re buying a home, you’re watching a lot of numbers.
Down payment.
Closing costs.
Mortgage payment.
Property taxes.
Insurance premium.
It’s understandable to want to keep every expense as low as possible.
But homeowners insurance isn’t something we recommend choosing based solely on the lowest premium.
Two policies that appear similar on price can provide very different protection.
It’s worth discussing things such as:
- Dwelling coverage
- Personal property
- Liability limits
- Deductibles
- Water backup coverage
- Additional living expenses
- Replacement cost provisions
- Coverage for valuable belongings
- Available endorsements
Saving a few dollars isn’t much of a victory if you discover after a loss that the coverage doesn’t work the way you expected.
What Can Make a Home More Difficult to Insure?
Not every house presents the same insurance risk.
Certain property characteristics may require additional information or affect which insurance companies are willing to offer coverage.
Examples can include:
- An older roof
- Outdated electrical systems
- Certain heating systems
- Prior property claims
- Vacant or unoccupied properties
- Swimming pools or trampolines
- Certain types of renovations
- Detached structures
- Business activities conducted from the home
This is another reason to involve your insurance agent early.
If something requires additional attention, it’s much better to discover it weeks before closing instead of days before closing.
Don’t Forget About Your Auto Insurance
Buying a home is also an excellent time to review your entire insurance program.
Depending on your situation, combining your homeowners and auto insurance may provide advantages such as available multi-policy discounts.
More importantly, it gives your agent an opportunity to review your liability protection across both policies.
This may also be the right time to discuss whether an umbrella policy makes sense.
You’re purchasing what may be your largest asset.
It’s worth looking at the bigger picture.
What Happens Before Closing?
Once you’ve selected your coverage, your insurance agency can coordinate with your mortgage professional or lender regarding the insurance information needed for closing.
The lender may request certain documentation or require specific information to be included.
This happens every day.
A good insurance agency should make this part of the process easy for you.
One More Thing: Don’t Cancel Your Old Insurance Too Early
If you’re moving from another home, don’t immediately cancel the insurance on your existing property.
There can be overlap between moving dates, closing dates, and when ownership officially transfers.
Talk with your insurance agent before making changes so that you don’t accidentally create a gap in coverage.
The MVP Approach
At MVP Insurance, our goal is to make the insurance portion of buying a home one of the easiest items on your closing checklist.
We’ll help gather the information we need, explain your coverage options, coordinate with your mortgage professional when necessary, and make sure you understand the protection you’re purchasing.
And because we’re an independent insurance agency, we can help evaluate available options rather than simply handing you one choice.
No pressure.
No confusing insurance jargon.
Just practical advice to help protect what matters most.
Final Thought
When should you get homeowners insurance when buying a house?
Start the conversation shortly after your offer is accepted.
You don’t need another last-minute task three days before closing.
Starting early gives you time to understand your coverage, address potential property issues, coordinate with your lender, and arrive at closing knowing one more important item has already been handled.
Then you can focus on the exciting part:
Getting the keys to your new home. 🔑🏡
Buying a Home? Let MVP Help.
If you’re purchasing a home, contact MVP Insurance as soon as you have an accepted offer.
We’ll help you review your homeowners insurance options and work with your mortgage professional to help keep the process moving toward closing.
Request a homeowners insurance quote:
https://www.mvpins.com/quotes/
Already have insurance? Securely send us your current policy information:
https://app.usecanopy.com/c/MVPINSURANCE
“Think you might be overpaying?
Get a fast quote here: https://www.mvpins.com/quotes/”