If you have a mortgage, your lender will require homeowners insurance coverage. While not a necessity if your mortgage is already paid off, homeowners insurance is something every property should have anyway.
Lenders will require home buyers to purchase at least a minimal level of the standard homeowners insurance policy. This protects the house as their collateral; the lender does not want to lose it to a fire, theft, or other catastrophe.
Homeowners insurance will be shown on the closing document listing all settlement costs at the close of a residential real estate transaction. While not a part of the mortgage, the minimum insurance requirements will need to be met before a loan can be funded. Minimum insurance requirements will vary from lender to lender.
You can shop for homeowners insurance on your own. Your CENTURY 21 Troop Real Estate professional will be able to recommended insurance professionals in your area.
Your home is probably the single largest investment you’ll ever make. By insuring your home, you are helping to protect your investment and your equity.