Whether you need property insurance to close on a real estate transaction typically depends on several factors, including your lender’s requirements and the specific terms of your purchase agreement. In many cases, property insurance is a necessity to close on a home.
Lenders often require borrowers to obtain homeowners insurance before finalizing a mortgage. This insurance protects both you and the lender from financial losses due to unexpected events, such as fire, theft, or natural disasters. Lenders want assurance that their investment is protected.
- Home insurance provides coverage for unexpected events like fire, theft, and natural disasters, offering financial security.
- Even if your lender doesn’t mandate it, having property insurance is a smart choice to protect your investment.
- Ontario experiences weather extremes, making insurance particularly valuable for safeguarding against property damage.
- Property insurance premiums vary based on factors like location, property type, and coverage.
- Homeowners should shop around for insurance quotes to find the best coverage and rates.
It’s crucial to consult with your lender and review your purchase agreement to understand the specific insurance requirements for your situation. Ensuring that you have the appropriate property insurance coverage in place is a crucial step toward a successful and secure real estate closing.