Do I have to pay home insurance?

Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a mortgage, your lender most likely will require you to have home insurance coverage to protect the loan they have on your home in case of damage caused by unforeseen circumstances, such as fires or natural disasters.

Do I pay homeowners insurance at closing?

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 …

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