When financing a home, lenders typically require buyers to secure homeowner’s insurance as part of the loan agreement. This policy provides essential protection against unexpected damages, such as fire, theft, or natural disasters, ensuring your home is protected. Homeowner’s insurance offers peace of mind and financial security, covering repair or replacement costs for the home and its contents, along with liability protection for accidents on the property. Keep in mind, that there are many factors that may influence the cost of your homeowner’s insurance like the type of construction, house size, and the company you choose. Just like with the loan, make sure to shop around for insurance that works for you.

Securing a policy before closing is crucial, as most lenders will need proof of coverage to finalize your mortgage.