If you are closing on a new home shortly and are taking a mortgage, you may be asking yourself when to get home insurance on new home?  This is a good question and we will answer it for you here.  What will happen after your offer for the home is accepted by the seller, more parties will get involved in addition to your realtor.  You will now have the closer, underwriter, lender, title company, etc. working to make you the new homeowner.  And, each one of these professionals need certain items to be completed. Of course a lender wants to protect their investment, and will require FL homeowners insurance be purchased from a licensed insurance agent.  The coverage must be for replacement cost and you need to make sure to keep the deductibles low enough to meet the lenders requirements.  Generally, you can’t take on more than 1% of the homes loan to value in deductibles.  But, a $2,500-$5,000 fire or “all other perils” and a 5% hurricane deductible might be the max.

For a loan to pass final approval, the underwriting of your loan will need begin.  This is the next phase of the mortgage process where the lender seeks to take you from pre-approval to acceptance.  At this time, your loan officer will request that  you not only get a FL homeowners insurance quote, but also “bind” the coverage with an effective date of the estimated closing.  This entails completing an application with your agent putting the FL homeowners insurance into effect for a specific effective date.  This is a very important piece of the loan closing process, and procrastinating will only delay your closing.  Now to get to the main point of when to get home insurance on new home.

I Got It, Now Tell Me When to Get Home Insurance on New Home

Generally, you need to get FL homeowners insurance approx. 1-4 weeks prior to closing.  As your insurance agent, we can bind coverage for the same day as the effective date.  We are not in any rush, but if you delay, you might push-off your closing date into the future.  The loan can’t close without the binder.  Make sure to have your estimated closing date and “mortgagee clause” handy because we will need this information to put on the application.  A mortgagee clause is simply the name and address of the lender along with your loan number.  Your loan officer will give this to you.

We Work For You to Secure FL Homeowners Insurance Efficiently

RTC Insurance Advisors agents handle new home purchases all the time.  We communicate with you and your lender to help make your loan close fast!  We send the invoice and declaration page directly to your lender after the application is completed.  So, please call us at 352-200-2066 so we can determine which FL homeowners insurance company is offering the best rate in your zip code.  We work with 37 of them to insure the lowest rates.  Then, after your review of the quotes and rates, we will make adjustments to the limits if necessary and bind the coverage with the most appropriate company.  You have payment choices that we will discuss.  We even inform the insurance company if you want to escrow payment so you don’t have to see any renewal bills come renewal time.  Your lender will get the future invoices.  Simply fill out the form below and we’ll email you quotes for review and help to secure you coverage.  Now that you know when to get home insurance on new home, what else can we help you with?

P.S. If you are paying cash for a new home and no liens will exist, then you aren’t required to carry FL homeowners insurance.  It is recommended of course to protect your investment and I am sure you’ll be wanting a policy.  So, call us so we may quote you rates and answer all of your questions.