Do I Need Homeowners Insurance Before Closing?

Buying a home is one of the biggest investments you’ll ever make — and protecting that investment starts before you even get the keys. One of the most common questions home buyers ask is: Do I need homeowners insurance before closing? The short answer is yes — and here’s why.

Why Homeowners Insurance Is Required Before Closing

Most mortgage lenders require proof of homeowners insurance before they’ll allow you to close on your new home. This protects both you and the lender from financial loss if something happens to the property, such as fire, storm damage or theft.

Before closing, your lender will typically ask for an insurance binder or declaration page, showing that your policy is active and effective on or before your closing date.

What Homeowners Insurance Covers

A standard homeowners insurance policy typically includes coverage for:

• The structure of your home (in case of damage from covered events)

• Personal belongings inside the home

• Liability protection if someone is injured on your property

• Additional living expenses if your home becomes temporarily uninhabitable

Your agent or insurance provider can help you tailor coverage to meet your needs and comply with your lender’s requirements.

What If You’re Paying Cash?

Even if you’re purchasing your home outright — meaning no lender is involved — having homeowners insurance is still highly recommended. Life happens, and without insurance, any repairs or losses would come directly out of your pocket. Protecting your investment from day one is simply smart home ownership.

When to Get Your Policy in Place

Ideally, you should start shopping for homeowners insurance as soon as your offer is accepted. This gives you time to compare quotes, choose the best coverage, and provide proof to your lender before your closing date.

Your Keefer Fischer Real Estate Team, led by Kerry Keefer Fischer, can connect you with trusted local insurance professionals throughout Kalamazoo, Portage, Mattawan, and Southwest Michigan to make the process smooth and stress-free.

Final Thoughts

Having homeowners insurance before closing isn’t just a requirement — it’s a crucial step in protecting your new home and your financial future. Whether you’re a first-time buyer or an experienced homeowner, being prepared ensures peace of mind when the big day arrives.

Call to Action:Ready to take the next step toward home ownership? The Keefer Fischer Team is here to guide you through every part of the buying process — from offer to closing. Reach out today to get expert help buying your next home in Southwest Michigan!