Your lender requires that you secure and prepay a premium that fits the loan requirements for coverage. The exact amount owed at closing depends on your specific loan for new home purchases. You can pay the homeowner’s insurance premium up-front and out of escrow or at closing in addition to your other settlement fees. For mortgage refinance, you may or may not be required to pay homeowner insurance at closing.  It is best to consult with your independent insurance agent and loan officer.