Once you spend money to purchase a home, you must protect your investment almost immediately. You have a financial interest in the property from the time you first put earnest money down to secure your bid. As soon as you place a bid, it’s important to start looking for a good homeowners insurance policy. Researching before you buy is the best way to find the right policy. If you already have a homeowners policy in place for your current home, don’t just assume that your current insurer will be able to provide you with what you need for your new home.

Before You Close on a New House

Anytime you invest money into a property, even if it is just earnest money, you want to do two things. Protect your investment and provide coverage for when you actually take possession of the property. Start looking for a homeowners policy as soon as you choose the home you want to buy. Get a few quotes and do all the research before writing the check for the earnest money. Once the process is underway, and your bid has been accepted, it’s up to you to take the necessary steps to protect your new home.

Why Do Lenders Require Home Insurance?

Lenders require you to have a homeowners insurance policy in place before they give you the funds to pay for the property. If you don’t have a home insurance policy in place when you take possession of the property, your lender runs the risk of losing the money they gave you to buy the property in case it gets destroyed in a disaster. Most lenders will purchase a policy for you if you don’t have one in place. The problem is that the policy only covers their investment, not your personal property.

When Should You Buy Home Insurance?

Most lenders require you to have a homeowners policy in place before you sign the mortgage contracts. This ensures that adequate coverage is in place before you possess your home. It also ensures that you have the coverage you need to protect your personal belongings before moving into your new home. Both lenders and insurance agents agree that you should begin your search for a quality policy at least three weeks before you close. Closing can take a month or more in many cases, so having a policy in mind early will make it easy to get it started when you have a closing date set.

Buying a home can be a long, drawn-out process. Once you know that the home will be yours, it’s up to you to buy homeowners insurance and make sure your property is protected. Contact our experts at Scautub Agency and talk to our reputable agents to buy the homeowners insurance you need when you need it. This gives you the opportunity to protect your home even before you sign your name on the dotted line. To get started on your personalized home insurance, call us at (518) 346-3427 today!