~1 monthHow early to start shopping before closing
3 daysTypical minimum notice lenders need for proof
45 daysNotice required before force-placed insurance
20%Down payment below which escrow is common
Key takeaway: Your lender will require proof of homeowners insurance, usually a binder or declarations page, at least a few days before closing. Start shopping about a month ahead, insure the home for its full rebuilding cost (not the purchase price) and check the flood zone. With less than 20% down, your premium will usually be paid through an escrow account as part of your monthly mortgage payment.
How we put this guide together: Lender and closing requirements come from Policygenius; force-placed insurance rules from the CFPB’s mortgage servicing rule (12 CFR 1024.37) as summarized by Nolo; coverage guidance from the Washington and Maryland insurance regulators. Figures were checked in October 2026 and vary by state, home and insurer. See our advertiser disclosure.

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When to buy

Start comparing quotes about a month before closing. That leaves time to compare several insurers, ask about early-quote discounts and sort out any problems, such as an old roof or a past claim on the property. Lenders typically need proof of coverage from a few days to two weeks before closing, often at least three business days.

Ask the seller for the age of the roof, plumbing, electrical and heating systems; insurers price on them. You can also ask the seller for the property’s CLUE report (only the current owner can order it), which shows insurance claims filed on the home in recent years.

What your lender will require

  • Basic perils: at minimum fire, wind and theft, which standard policies include.
  • Enough dwelling cover: generally 100% of the home’s replacement cost, meaning the cost to rebuild, not the purchase price or market value.
  • Mortgagee clause: the lender is named on the policy and must get written notice, often 30 days, before the policy can be cancelled.
  • Flood insurance if the home is in a high-risk flood zone. Even outside high-risk zones, consider it; see our flood guide.
  • Proof: an insurance binder (temporary evidence of coverage), the declarations page or a certificate of insurance.

How escrow works

Many lenders require the first year’s premium to be paid upfront, before or at closing. If you put down less than 20%, you’ll usually have an escrow account: your monthly mortgage payment includes amounts for property taxes, mortgage insurance and homeowners insurance, and your servicer pays the bills when due. Check your escrow statement each year; if premiums rise, your monthly payment will rise too.

Avoid force-placed insurance

If your coverage lapses, your mortgage servicer can buy “force-placed” insurance and charge you for it. It’s typically much more expensive and protects only the lender’s interest in the building, not your belongings or liability. Federal rules require the servicer to send a notice at least 45 days before charging you and a reminder at least 15 days before, with the cost. If you have escrow, the servicer generally must keep paying your existing policy. If you get a notice, send proof of your own coverage right away.

Choosing your coverage

  1. Dwelling: full rebuilding cost; ask about extended replacement cost.
  2. Personal property: first-time buyers often underestimate belongings. Make a quick inventory.
  3. Liability: at least $100,000; $300,000 or more is common.
  4. Deductible: choose one you can pay after the costs of moving in. Check for separate wind or hurricane deductibles.
  5. Add-ons: water backup, and earthquake cover in seismic areas.

Our coverage guide explains each part of a policy in detail, and our cost guide shows typical prices by state.

Common first-time buyer mistakes

  • Insuring for the purchase price. Land isn’t at risk; rebuilding cost is what matters.
  • Waiting until the last week. Problems with a roof or claims history can delay closing.
  • Ignoring flood risk because the lender didn’t require cover.
  • Not bundling. Moving your auto policy to the same insurer can save 20% or more at some companies; see our discounts guide.
  • Not re-shopping. Compare again at your first renewal; see our insurer comparison.

Frequently asked questions

When should I get homeowners insurance when buying a house?

Start shopping about a month before closing and have your binder ready at least a few days before, as your lender requires.

How much homeowners insurance does my lender require?

Generally enough dwelling coverage to rebuild the home (its replacement cost), with the lender named as mortgagee. Lenders may also set a maximum deductible.

Do I have to pay homeowners insurance upfront at closing?

Often yes. Many lenders require the first year’s premium paid before or at closing, with later years paid through escrow.

What is an insurance binder?

A temporary document from your insurer proving coverage is in place until the full policy is issued.

What happens if my home insurance lapses?

Your servicer can buy force-placed insurance after giving notice, at a much higher cost. Send proof of coverage quickly if you get a notice.

Sources

Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.