When Do I Buy Homeowners Insurance?

A homeowners insurance policy, also called home insurance, is not required by law, but it is often required to receive a loan from a mortgage lender or other financial institution. But home buyers are often confused about when to purchase homeowners insurance. Read on for tips on when to buy homeowners insurance and for information on how much of your home insurance premiums you may be expected to pay upfront.

We’re here to help. Contact DRD Insurance Agency in La Habra, California, to get a homeowners insurance quote today.

What Is Homeowners Insurance?

Homeowners insurance can protect you from serious financial hardship after covered property damage to your house. It is a package policy that can also provide personal liability coverage for allegations that you or your family caused bodily injury or property damage to a third party. This type of insurance may pay to repair or replace your possessions if they are damaged due to a covered loss.

Call DRD Insurance Agency to learn how our homeowners insurance coverage can protect your home.

When Do I Buy Homeowners Insurance?

Generally, it’s considered a good idea to begin shopping for homeowners insurance as soon as you sign a contract to purchase a home. You will often have at least a month between the time you sign your contract and your home closing date, which should give you plenty of time to shop around for the right homeowners insurance coverage.

Your mortgage lender will typically ask to see proof of homeowners insurance coverage three days before closing at a minimum. They do this to protect their financial stake in your home if your property is damaged or destroyed.

Is Homeowners Insurance Paid in Advance?

Depending on your mortgage lender, you may be required to make your first homeowners insurance payment when you close on your home. Sometimes, this payment will cover your premiums for the entire first year. If you have an escrow account, your mortgage lender will likely require you to pay your homeowners insurance yearly. If you don’t have an escrow account, you may be able to choose to pay your home insurance premiums monthly, quarterly, semiannually or annually, depending on your lender.

How Much Does Homeowners Insurance Cost?

The cost of your home insurance will vary with numerous factors. Here are some variables your insurer may consider when determining the cost of your premiums:

• Location 
• Type of home 
• Year built 
• Construction materials 

Contact DRD Insurance Agency for a homeowners insurance quote today.

Finding the Right Coverage

At DRD Insurance Agency, we understand the importance of protecting the investment you have in your home. Contact us today to learn more about the homeowners insurance coverage solutions we offer.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.