Is Homeowners Insurance Required Before Closing?
Getting familiar with everything you need to know about buying a home can be a bit overwhelming. New terminology, all the various closing costs and the task of pulling the money together to make the purchase can be a lot to handle.
If you’re a first time homeowner, you may have a lot of questions. Do you know if money is due on your homeowners insurance premium at closing? If so, how much? You can use a mortgage calculator with PMI, taxes, insurance and closing costs to help you get answers you need, but most of those numbers are only valid after closing.
To help you navigate your way through the finances of the closing process, we’ve got some helpful homeowners insurance closing details to share with you. We’ll explore what you should expect at closing, and the various ways you can deal with the payment of your homeowners insurance premium. For instance, if you pay the premium in advance, you can offset the amount due when it’s time to sign on the dotted line.
There’s a lot to consider when choosing a homeowners policy, especially when you’re trying to factor in all the other expenses you’ll be covering at closing. In a buyer’s market, where inventory on homes for sale are high, you may be able to persuade the seller to cover some of your prepaid fees. So ask your real estate agent about how they would approach seller concessions while you’re building your offer to purchase. You may be in for a pleasant surprise!
As you consider your closing cost finances while shopping for homes, remember to check in early with your American Family Insurance agent. They’ll help you get optimal coverage for your new home and will work with you so you understand how the insurance you’ve selected protects your big investment.