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Closing on your new home

Shop for homeowner's insurance

Homeowner’s insurance protects you in case of accidental damage to your home.

Lenders typically also require you to have homeowner’s insurance as a condition of your loan. You can choose your homeowner’s insurance company.

What to do now

Shop for homeowner’s insurance

Contact several companies to get quotes in writing. Compare the cost and coverage amounts. See how your premium changes if you increase or decrease the deductible.

Share your homeowner’s insurance quotes with your loan officer

Show your loan officer one or more quotes you are considering, and ask if they meet the lender’s requirements for homeowner’s insurance coverage.

Choose a homeowner’s insurance company and policy

Send the final information to your loan officer.

Determine if you need flood insurance

Homeowner’s insurance typically does not cover damage from floods, so you’ll need separate flood insurance policy if that’s a risk to the home you are buying. Flooding causes $8 billion in damages in the United States in an average year. Learn more about flood insurance at and how disaster risks could impact you.

What to know

What influences the cost of homeowner’s insurance?

  • The coverage amount and cost to rebuild
  • The disaster risk of the area where the property is located
  • Property characteristics (such as size, condition, type of roof, electrical, year built, building code, disaster mitigation features)
  • The deductible amount (the amount you are responsible for before a claim is paid)
  • Previous history of claims by you or on the property

If you’re buying a condo or co-op, homeowner’s insurance may be more complicated

When you’re buying into a multi-unit building, fees paid to your condominium association or co-op board usually include master insurance for the common areas of the building. Still, you need your own insurance for your unit.

Visit our sources page to learn more about the facts and numbers we reference.

The process and forms described on this page reflect mortgage regulations that apply to most mortgages.