If you are financing a home , you will typically be required to secure home insurance before the closing for your future property. In a cash purchase , it will not be required but I would certainly recommend it !

A few weeks into your transaction, you should have a call from your realtor reminding you about this and checking in to see how you’re coming along in getting initial quotes from insurance agencies.

The bank will usually ask for what is called a “ Binder “ showing that you have secured the policy and that it is set to be activated for the day of the closing.

You may wonder how to get started on this process.

One great resource will be your buyer’s agent . Ask them for any personal recommendations they may have. You can also ask family and friends to see who they have used and have had great experiences with. A key question to ask is “ If you have had questions during your policy coverage, have they been responsive and are they easy to get a hold of?” If you choose a company that will put you on hold for 45 minutes only to be transferred to another department, that might be one to steer clear of.

Once you get several quotes, be sure to really look at the proposed policy. What is covered? What isn’t?

What will your deductible be should you have a claim ?

What are they estimating as the “ replacement value” of the home. If you are buying a home in an area where the highest selling price is $250,000, does it make sense to have a replacement value at $600,000? Just a few things to keep an eye out for and to keep in mind.

Don’t be shy about asking the agent to go over the details of the policy and answer any questions that you may have.

As always, I truly believe whether it is buying a home, looking for a contractor, or in this case securing insurance, the more information you have as the consumer the better.

If I have any insurance agents reading this post, please feel free to add comments or other suggestions :)

Take care everyone and cover that house !

Tanya