Do I Buy Homeowners Insurance Before Closing?

Whether you’re thinking about buying your first home or have paid off the mortgage on your existing home, homeowners insurance is an essential way to manage the risks of homeownership. Read on to learn more about when homeowners insurance may be required and for tips on when you should buy it.

At Safeway Insurance Agency, protecting your home is our priority. Contact us in Kansas City, Missouri, to learn more about our homeowners insurance coverage.

What Does Homeowners Insurance Cover?

Homeowners insurance, also known as home insurance, can help provide financial protection from unexpected losses involving your home and help cover you and your family if liability claims arise. It is a binding agreement between you and your insurer where your insurer agrees to pay for covered losses, up to your policy limits, in exchange for your premiums.

Here are some common coverages of home insurance:

• Personal liability coverage can help pay for expenses (e.g., legal fees, medical bills) arising from allegations that you caused bodily injury or property damage to a third party.
• Dwelling coverage can help cover repairs or replacements for property damage to the structure of your home and its attached structures (e.g., porches) after a covered peril.
• Other structures coverage can help pay for damage to other detached structures on your property (e.g., fences, gazebos) due to a covered loss.
• Personal property coverage can help reimburse you for damage to your personal belongings (e.g., clothes, electronics) from a covered loss.
• Additional living expenses can help pay for your extra living expenses if a covered peril causes property damage that renders your home temporarily uninhabitable.

Is Homeowners Insurance Required?

Although homeowners insurance is not mandated by law, it is commonly required by mortgage lenders to protect their investment in your property. But even when home insurance is not required, it may be a good idea to help protect yourself and your family from financial hardship.

Contact Safeway Insurance Agency for a free homeowners insurance quote today.

Do I Buy Homeowners Insurance Before Closing?

Generally, mortgage lenders require you to show proof of homeowners insurance within three business days before you close on your home. In order to ensure you have enough time to find the right policy, it’s generally considered a good idea to begin looking for homeowners insurance after you sign a contract for your new home. Usually, this will give you at least three weeks to shop around and compare different homeowners insurance quotes before selecting a home insurance policy.

Do I Pay Homeowners Insurance in Advance?

Your mortgage lender may require you to make your first homeowners insurance payment up front as part of your closing costs. Sometimes, your first home insurance payment may be enough to cover your first year of premiums. If you have an escrow account, annual premium payments will likely be made. Without an escrow account, you may be able to choose whether you wish to pay your home insurance premiums monthly, quarterly, semiannually or annually.

Where Can I Buy Homeowners Insurance?

Finding the right homeowners insurance policy may seem daunting. We’re here to help. Call Safeway Insurance Agency at 816-931-1222 or visit our website for more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.