I’m just about to close on a new home. I know I’ll need home insurance at some point, but I’m not exactly sure when. Will I need home insurance before closing?
Most mortgage lenders will require proof of homeowners insurance three business days before the closing date, while some might ask for it sooner than that. They’ll also often require that you purchase your policy in full for an entire year.
Lenders will usually require you to keep up with homeowners insurance for the entire duration of your mortgage. It’s similar to how financed cars often require full coverage
until your loan is paid off. They want to make sure their investment is protected.
Even if you were to purchase a home without financing, ensuring you have your homeowners insurance policy in place before closing will help protect you from worst-case scenarios. After all, your home is the last asset you want to leave vulnerable.
You should start your search for homeowners insurance at least one month before your closing date, giving you time to shop around and find the best coverage at the best rates.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.