When Do You Need to Get Home Insurance?

Technically, you don’t need to purchase home insurance in Winder, GA if you are paying for your house in cash. However, many people need to finance their new home and the lender is going to require that you purchase homeowners insurance before your escrow closes. In many cases, you will be asked to provide proof that you have prepaid for one year’s worth of coverage before the lender will close. Lenders require you to have insurance because it helps protect the property. The property is technically the lenders until you pay off the mortgage.

By paying the home insurance premium at once, this will allow you to exclude the premium from your closing costs. Since closing costs are generally paid in one lump sum, this can make it easier. You can choose to set up an escrow account, in order to avoid paying any big sums all at once for homeownership costs. An escrow account is basically a savings account that is designed to help you pay your mortgage, as well as property taxes and homeowners insurance in installments. Your lender will deal with payments from your escrow account, which can help you with financial management.

Ideally, you should start looking at quotes when you know you are in the process of buying a new home. However, once you have a signed purchase agreement in place, start looking at insurance. You want to have a quote before any contingencies expire, so that you still have time to back out of the purchase if needed. Working with a dedicated agent at H2M Insurance throughout this can make the process much easier. A dedicated agent can help you find the right coverage and make sure you have enough.

Contact H2M Insurance, serving Winder, GA, to get a quote on home insurance.