Getting ready to close on a new house brings both excitement and uncertainty. As you coordinate with lenders and attorneys in Central New York, the question of when to secure home insurance often creates confusion. Should you get quotes right away? Wait until you're approved for the loan? The timing matters more than many buyers realize.
At the Horan insurance agency, we assist homebuyers throughout Central New York with information about timing their insurance decisions during the purchase process. We work with several carriers to help buyers explore coverage options that fit their closing timeline.
In this article, we'll explore the optimal timing for getting home insurance quotes based on your unique situation, how your insurance history affects the process, and why starting too early or too late could impact your closing.
How Your Past Claims History Shapes Your Insurance Timeline During Home Purchase
Insurance timing isn't one-size-fits-all when buying a house. Your claims history plays a key role in determining when to start the process.
For buyers with no insurance claims in the past five years, you can begin gathering and comparing quotes about two weeks after submitting your financial documents to the lender. While getting quotes early helps with planning, hold off on purchasing the actual policy until your closing date is confirmed.
For example, if you buy a policy effective April 18th but end up closing on April 16th, you'll need to start over with a new policy, which can affect your closing schedule.
If you or any co-borrowers have filed even one claim in the past five years, consider starting earlier in your home search. This includes claims on any property you've owned - not just your primary residence. Claims on rental properties, properties owned before marriage, or properties your spouse owned before you were married all factor into your insurance considerations.
Understanding How Insurance Quotes Impact Your Monthly Payment Calculations
Your lender calculates your monthly payment using principal, interest, taxes, and insurance (PITI). They typically estimate the insurance portion based on regional averages—for example, assuming $100 per month for insurance. However, if your claims history results in a premium of $160 per month, that extra $60 monthly could affect your loan qualification.
This difference becomes particularly challenging because:
- Tax rates remain fixed
- Interest rates won't decrease
- Sellers rarely reduce prices to compensate
Learning about higher insurance costs late in the process can complicate your purchase plans.
How to Time Your Insurance Search for a Smooth Home Purchase
Your insurance coverage needs to align with your closing date. Consider these suggested timeframes based on your situation:
- Those with no recent claims might begin after loan pre-approval
- While buyers with past claims may want to start gathering quotes soon after having an offer accepted on a home, rather than waiting until later in the closing process.
In all cases, allow time for adjustments if closing dates change.
Avoid Insurance Delays in Your Home Purchase
Many homebuyers discover too late that their insurance history affects more than just premium costs. The timing of when you begin gathering insurance information can impact your entire purchase process.
The Horan insurance agency provides information to Central New York homebuyers about insurance timing throughout the purchase process. We can discuss coverage options from different carriers and share insights about potential timing considerations based on your situation.
Click the Get a Quote button below to learn more about timing your home insurance coverage during your house purchase.
And be sure to read our companion article: Buying Homeowners Insurance for the First Time.
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