when to get homeowners’ insurance when buying a house

There are few things in life more exciting than finding a beautiful new Florida home. When you decide on the house of your dreams, you’ll undoubtedly have a long to-do list to prepare it to be your new residence. One of the items on that list will be getting insurance for your new Florida home – but when should you buy it and how much coverage do you need?

It’s easy to get confused about when to get homeowners’ insurance when buying a house. Here, we’ll give you some inside information that will help you make the best decision for your new property.

When to Get Homeowners’ Insurance When Buying a House

In general, it’s a good idea to have your homeowner’s insurance squared away as soon as possible – and definitely before closing on the home. For many lenders, this is a requirement; you cannot finish the closing process without valid proof of insurance. Many mortgage lenders even have specific policy or coverage requirements, so understanding your lender’s is a key step in acquiring the protection you need.

Why is Homeowner’s Insurance So Important?

Most people understand that insurance covers the cost of potential disasters and damage, but what about those whose homes are situated in areas where this is uncommon? What about people who would rather skip the monthly payments to keep their home covered? Why is it so critical to have your home covered in the first place?

The truth is, no home is impervious to disaster – especially in Florida, where the weather can cause serious problems for homeowners. Just because your home isn’t likely to be in the path of a tornado anytime soon doesn’t mean you can’t experience other major issues, either. Florida homeowner’s insurance is designed to help with these costs since home repair and disaster recovery costs in the area can often be overwhelming.

Most lenders also require proof of insurance upfront because it protects their investment in you. Remember, they’re technically paying for the home; you’ll be paying them back for that investment over time. No one wants to put up money toward something that is an inherent financial risk, so limiting those risks by obtaining a full-coverage policy is the requirement for most mortgage providers today.

How Much Insurance Do I Need?

Unlike auto insurance, there aren’t a lot of options below the full coverage level for Florida homes. The same lenders who require proof of insurance upfront will also typically require that you carry a policy covering 100% of damages in the event of a disaster – and some may even require you to invest in additional policies such as Florida flood insurance or coverage for your belongings. Be sure to check with your individual provider before purchasing a policy, as they are often more affordable when bundled upfront.

Whether you’re wondering when to get homeowner’s insurance when buying a house or trying to navigate the process, the experts at E & L Insurance of Miami, Florida can guide you through every step. Give us a call today at (888) 700-4049 to learn more!