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How does home insurance work with a mortgage?

I’m looking to purchase a house soon, and I’m getting a little tripped up on some of the technical details of the home buying process. For instance, how does home insurance work with a mortgage?

avatar
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
The home buying process can be a lot to take in, so don’t feel bad if you’re getting a little confused. Home insurance and a mortgage are two separate things, but both are necessary when it comes to financing a house.
When you close on your home, you will need to show proof that you have
home insurance
. Home insurance protects your house and belongings against damages from a
covered peril
like fire or theft.
A
mortgage
is a financial agreement between you and a lender that enables you to take out the money needed to buy a house and pay it back.
So, these two items are technically separate, but homeowners insurance is necessary in order for you to take out a mortgage.
If you’re in the market for a better home or
car insurance
policy, use the
Jerry
app to find the best deals without a hassle.
Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get insurance quotes for coverage similar to your current plan. Jerry customers save an average of $887 a year on car insurance alone!
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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.

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