About Your New Home Purchase
With a new home purchase, you already have a million things to do and think about, having the right new home insurance is likely not one of them. Even so, your state likely requires you to have insurance before your home closes. The last thing you want to do is put your new home mortgage off track, that’s why it’s essential you find the right new homeowners insurance coverage now.
A home is one of the biggest investments you’ll ever make, so making sure the right things are covered is paramount. Sure, you’re going to need home insurance with a new home purchase to close, but it’s far more important than that. There’s a reason why more Colorado residents are choosing the Scheibe Agency for all their insurance needs. Get a car insurance quote today by calling us at 1-303-623-1997 and discover the difference for yourself.
Is New Home Insurance Required?
As we said earlier, if you’re paying off your home in full with cash, the answer would be no. For everyone else, yes, you’re going to need new home purchase insurance before you’ll be able to close your loan. In some cases, you’ll need to show proof that you have home insurance before your new mortgage loan will close. In some cases, you could be required to get a full year worth of home coverage before the loan will close.
Technically speaking, it’s still your lender’s home and property until you pay off the loan. It’s quite possible they’ll have specific requirements you’ll have to follow before you can close your home loan. Once the loan goes to underwriting, you’ll learn a lot more about these special recommendations.
How Much New Home Insurance Do I Need?
So, exactly how much new purchase home insurance will you need? Well, a lot is going to depend on you.
Your lender will tell you what they require and you’ll have to abide by their request or you’re not going to close your home. Some lenders may be more laid back while others may require several things. Before you start buying homeowners insurance and other coverages, you may want to ask your lender what will be required.
Now, there’s a number of different things your lender may say they want covered.
- Smoke Damage
- Vandalism and Theft
- Fire and Lighting
- Hail and Windstorm Damage
- Falling Objects (Example: Trees)
- Frozen Plumbing, AC or Heating
Now, these are specific to the home itself, meaning it may not cover the inside of the home. Again, it all depends on the homeowners insurance coverage you choose to buy.
Buying Homeowners Insurance Before Closing
Now, there’s a few benefits for paying your homeowners insurance before you close on your loan.
Since most lenders require that you pay at least a full year worth of home coverage, it should mean that you can exclude the premium from your closing cost. Typically, these carry other fees, so it can actually save you a fair amount of money.
It’s possible that you can also open an escrow account to help you save more money. Essentially, an escrow is a savings account designed to help you pay your mortgage, property taxes or homeowners insurance in smaller, periodic installments. Your lender usually deals with payments from your escrow, which could be a less stressful financial scenario for you.
Purchasing a new home can be a stressful time (as you’re likely learning). Being prepared and buying your homeowners insurance ahead of closing can save you time and hassle later.
Shop And Compare The Top New Home Purchase Insurance Rates
You’re only one phone call away from getting the right coverage at a great rate. Ready to start on your new home purchase insurance policy? Just give us a call today at 1-303-623-1997 to get started.
A New Home Insurance Policy For Full Protection
Get In Touch
Do you have a question about buying new home insurance coverage or need to get a free quote? You can reach our office by calling 1-303-623-1997 or you can use our web form below.