When To Get Homeowners Insurance When Buying A Home?

  1. 155 POINTS
    Denise Billings
    Producer, Anixter & Oser Inc, Novato California
    You should start looking for coverage as soon as you know you that escrow has been been opened on a property.  You'll need to have coverage in place for the close of escrow and it's easier to get the wheels turning earlier as there are often roadblocks such as the location of the property might be an issue for various insurance companies.  Here in California we have a lot of brush areas where many insurance carriers won't offer coverage. Age and value of the dwelling can also pose problems in obtaining insurance,  so the longer you allow for the process, the better chance you have of obtaining coverage without problems.
    Answered on July 9, 2013
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    You will need to show proof that you have Homeowners Insurance on the home you are purchasing at the very least, at the time of closing.  Here in CT, however, most banks and mortgage companies are requiring that the proof be provided to them  several days before.  What you will need to provide is a copy of the policy declaration sheet showing your name as it will appear on the deed and closing documents and all the necessary coverage on the dwelling which usually needs to also stipulate that you are covered for "Replacement Value".  The mortgagee clause, which is very specific to each lender also needs to appear on the declaration.  If they have assigned a loan number, that should be included as well.  Finally, here in CT, whether you are going to be paying your insurance directly or if it will be paid by an escrow account, your lender will also be requiring a paid receipt for the first year's premium.  Talk to your insurance professional early in the process, usually after your offer has been approved, so that you are sure that everything will be handled in a timely and professional manner for you.
    Answered on July 9, 2013
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