Is Home Insurance Required When You Buy a House?

The short answer is YES! When dealing with a mortgage lender, you will be required to show proof of home insurance at closing. This is because mortgage lenders have an interest in your property. They are loaning you money to purchase it and want to know that the house will be safeguarded against natural disasters and other emergencies. Luckily, we have some wonderful insurance companies in Oxford and Lafayette county. Both your lender and your real estate agent can give you contact information for a few so that you can reach out to them and talk through what you need in a home insurance policy.

If you pay cash for your home and do not get a mortgage, it is not required that you get home insurance, but strongly recommended. According to the Insurance Information Institute, about 1 in 20 insured homes will file a claim each year. Your home is one of the largest investments of your life, why not insure it?

To see more statistics and read more in-depth on this topic, check out this realtor.com article.