The Ultimate Home Buyer's Guide

GET HOMEOWNERS INSURANCE

Many people wait until the last minute to get their homeowners (and other) insurances lined up.

I recommend taking care of this at least a few weeks ahead of the closing date.

That way you can make sure you get the best coverage, at the best rates, for your needs.

If you wait until the last minute, you might miss some discounts that you may be eligible for, simply because you’re in a rush. And you might also pay a higher premium because you weren’t able to shop around a bit.

In many cases, the lender will require a “binder” from the insurance company prior to providing the final loan approval. The binder simply means that the insurance company has approved your coverage, but the insurance will not go into effect until you own the property.

It’s common for your insurance company to require you to pay for one year up front. But this will likely be paid at closing, in your closing costs. Usually, your insurance will be paid for out of escrowed funds from your mortgage after the first year.

If you already have an insurance company you work with, great. If not, we can recommend a few companies to you.

Once you have your insurance lined up, please forward a copy of the insurance “binder” to us and your lender.

NOTE: This is all the more reason to pay close attention to the coverage you purchase now. You might not think much about it as the years pass, although you should probably make a note to revisit it on a yearly basis to ensure you have the best coverage.