As part of the underwriting process, your mortgage lender will require proof of homeowner’s insurance. This is an essential task, and getting started early will save you time and stress.
1. Shop Around for Insurance
- Start with Your Current Insurer:
Begin by asking your current auto insurance provider for a quote. Many companies offer discounts if you bundle your home and car insurance together. - Compare Rates:
Don’t settle for the first quote. Shop around to compare rates and coverage options, as they can vary widely between companies.
2. Effective Date
- Start Coverage a Day Before Closing:
Set your homeowner’s insurance policy to go into effect the day before your closing. This ensures you’re covered in case anything unexpected happens before the closing takes place.
3. Provide Proof of Insurance
- Documentation for Your Lender:
Be sure to get a formal document from your insurance company confirming the policy details. Your mortgage underwriter will require this proof of insurance before they can approve your loan.
By taking care of homeowner’s insurance early, you’ll be one step closer to closing smoothly and ensuring your new home is protected.