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Home and Property

Do I Need Homeowners’ Insurance Before Closing? 

The Baldwin Group
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Updated: March 25, 2025
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2 minute read

You may be wondering about homeowners’ insurance while you shop for the house of your dreams. Is homeowners’ insurance necessary? Do I need homeowners’ insurance before closing? And if so, at what stage in the home-buying process do I purchase it? These are all logical questions, and lucky for you we have the answers. 

Is homeowners insurance mandatory? 

Homeowner’s insurance is not required by law, but your mortgage lender will likely require you to have a policy in place before they will fund your home purchase. Even if you don’t plan on moving in right away, your lender will require homeowners’ insurance to protect their investment. Should your home suffer significant damage or be destroyed, the lender is protected for the mortgage amount. 

At what stage of the home-buying process do I purchase insurance? 

Your homeowners’ insurance should be in force at least three days prior to your closing date since the mortgage company will usually require evidence of coverage at this time. So, you should begin your home insurance comparison process no less than two to three weeks (2-3) prior to your closing. 

To help simplify the process, The Baldwin Group will do the comparison shopping for you. Just give us a little information and we’ll have our protection recommendation to you in less than an hour. 

What should I consider when selecting a home insurance policy? 

When you’re ready to purchase a homeowners’ insurance policy, there are a few important things to consider. First, you’ll need to decide on the amount of coverage you need. This will be based on the value of your home and belongings. Next, you’ll need to select a deductible amount. This is the amount you’ll pay out-of-pocket in the event of a covered claim. Higher deductibles typically mean lower premiums, so this is something to consider when budgeting for your policy. Finally, you’ll need to decide on the type of policy that’s right for you. 

There are eight types of home insurance with different levels of coverage to consider. 

Homeowners insurance typically covers: 

  • The home: In the event of a covered loss, homeowners’ insurance coverage can assist in the repair or reconstruction of your house and other structures on your property, like patios, detached garages, and storage sheds. 
  • Your possessions: A homeowners’ insurance policy can help cover the cost of replacing your possessions, like furniture and electronics. 
  • Temporary living: If your home is in need of repair or rebuilding, your homeowners’ insurance policy may cover the cost of additional living expenses (ALE). 
  • Liability: If a guest slips and falls on your walkway, they could sue you. Your homeowners’ insurance will help cover medical bills, legal costs, or court awards that result from the fall. 

It is normal for homeowners’ policies to exclude coverage for earthquakes or flooding. Your lender may require you to purchase separate earthquake or flood insurance depending on where your home is located. 

The Baldwin Group is dedicated to helping you choose the right insurance coverage for your needs. Request a free home insurance quote today

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