What is insurance during closing of a home sale?

Question

Hi Friends

I am planning to buy a house very soon and has been approached by couple of insurance companies saying that they give coverage during closing time.

What actually is this? and Is it really needed? Usually what is the reasonable price for this?

YOu guys have been great in answering all my previous questions. Thanks a lot and hope to hear the same kind of fedback.

Thanks

Bob

Answer 1

They are most likely referring to having your home insured for your closing.  If you are financing your home the mortgage company will require proof of insurance at the closing.  It is typical the insurance company of your choosing will send the atty and bank the binder showing the lender as the mortgagee.  

So basicly you need to get the home insured and have the proof in time for your closing.

Answer 2

You have to purchase homeowners insurance and it has to be in effect at the time of closing.  Wherever you decide to go to purchase your homeowners policy, after you sign the application and leave either the deposit or one year in full (if required by your mortgage), the agent will give you a binder of insurance to take to the closing.  They will probably also fax a copy to the bank & to your attorney.

Answer 3

I am in sort of the same boat as you right now. Right now I still have my renters insurance policy for 26 bucks a month that is covering my stuff that is in storage, fiance's engagement ring and stuff we have at our temporary living arrangement.  I was never told or asked to purchase insurance during closing time. If something happens to the house before you buy it, you think it would be all covered by the previous owners.

Personally I don't think it is something needed unless there is something different in that state you living in that gives you an option of doing so since you are the one making an investment on the house that you want to buy. If it worries you more, just do your homework first and than you know what you need and want before talking with more insurance companies.

Best of luck to you and happy house hunting....

Answer 4

Never heard of it and I have gone through 3 home closings.

Only ins. needed is the home owners policy

Answer 5

its up to you who you decide to go with for your home insurance.  a lot of times your mortgage company will call around to get quotes for you.  that's how a lot of people end up with insurance on their homes and have no idea who its with.  your mortgage requires you have insurance in place the day of the closing.  once you get a policy in place the agent will send a binder and invoice to the mortgage company and closing atnys office for you.