There’s a lot to remember when you’re buying a new house. We know the home buying process can feel overwhelming with so many steps to take from making an offer to move in. Homeowners insurance may feel like yet another thing to cross off the list before you get your new keys in hand, but a homeowners insurance policy can provide you with valuable coverage for your investment and it may be required by your mortgage lender.
If you’ll be purchasing your home with a mortgage loan, you’ll likely need to get your insurance sorted out before closing. If you’re not required to have insurance, you still should consider it and if you choose to purchase a policy, you’ll want it to take effect as soon as it transfers over to your name, so your home is covered as soon as it’s yours.
Do I need homeowners insurance?
While your state may not require homeowners insurance, almost all mortgage lenders do require homeowners insurance for your mortgage loan. They want to ensure their investment is protected against covered losses.. Once you pay off your house (or if you pay in cash), you have more freedom to determine what you want your homeowners insurance to look like.
Even if it’s not required, homeowners insurance is HIGHLY recommended. You’ve likely invested hundreds of thousands into this asset. Not having insurance can put your home and assets at risk. One liability claim or one bad storm and you could lose thousands. Homeowners insurance can help protect you financially against unforeseen and costly incidents.
When should I buy homeowners insurance?
You should start shopping for homeowners insurance BEFORE closing on your new home. If you’re paying for your home with the help of a mortgage loan, you’ll want to start getting serious about finding a home insurance policy once you’ve signed your Purchase and Sales Agreement and you’re ready to initiate the mortgage process. Your lender may include your insurance in your monthly payment, so they may need a quote soon after to help them estimate your monthly payment.
There are two reasons you want home insurance in place before taking the keys.
- Your mortgage lender likely requires insurance the moment you officially own the home.
- The second the keys are in your hand and the house has closed, anything that happens is 100% your responsibility.
- If a storm comes through on the night you close on your house and a tree falls through your kitchen, you would have to pay for the costs out of pocket without insurance.
- If a pipe suddenly bursts the day after you’ve signed the closing papers, that water damage is your responsibility.
- If a friend comes to visit you when you move in and they trip on your front stairs because of your negligence, they could sue you for their damages—and you wouldn’t yet have homeowners liability insurance to help you cover them.
No one wants to think about the worst situations—like something damaging your home the day after you move into it. But things do happen, and insurance can be there to help when those unforeseen covered incidents happen.
Recommended read: How far in advance should I start shopping for insurance?
How do I get homeowners insurance?
Thankfully, getting homeowners insurance is easy. With an independent insurance agent, like InsuraMatch, you can compare multiple quotes in minutes to get a feel for your options and the price.
To get a homeowners quote, you’ll need some personal information like your name, birth date, and marital status. Along with that, you’ll also need some information about the home you’re buying:
- Year built
- Basic facts about the house like square footage, electrical, plumbing, heating, flood zones, distance from emergency services, etc.
You may also be able to ask the seller or the listing agent about prior claims filed on the home. Your carrier can typically look to see what kind of homeowners insurance claims have been submitted in the past for your home, which can give them (and you) an idea of the risks that your home might be facing.
Ready to shop? Our licensed insurance advisors can help walk you through the process and advise you on the coverage you need for your new home. Call us today: (844) 522-0543
What about the homeowners insurance for my last house?
You want to keep homeowners insurance for your previous home up until the day of closing. In general, though, we don’t recommend cancelling your policy for your last home until the closing contract on that home and your new home are actually signed and finalized. Things happen, and you don’t want your homeowners policy to run out if a deal falls through
You might have to pay some overlap in insurance, but a few bucks can save you a lot in peace of mind.
Homeowners insurance resources
There are a lot of things that go into finding the right homeowners policy and carrier. You want to ensure you have the right amount and types coverage, and you want to work with an insurance company that you feel confident in.
Check out some of these guides to help choose the right homeowners insurance for your new home:
- The first time homebuyer’s guide to homeowners insurance
- 6 tips for buying homeowners insurance
- What to consider when comparing home insurers
- How much does homeowners insurance cost?
- 18 ways to lower your homeowners insurance premiums
- Are earthquakes covered by home insurance?
- See all of our. homeowners insurance resources here.
Get homeowners insurance now
Don’t wait until the last minute to protect your new asset. Homeowners insurance is highly recommended for everyone and anyone buying a home.
You’re entering a new and exciting phase of your life. Make it simpler, and check one more item off your plate by comparing homeowners insurance quotes with InsuraMatch right now.
In minutes, we can help you compare quotes from leading insurance providers, so you can get your homeowners insurance ready for closing day.
Compare home insurance quotes with one of our expert insurance advisors at (844) 522-0543today.
Not by the phone? Request a quote or schedule a call online: