When purchasing a house, there are many different items to take care of. After placing an offer on a house, most homeowners have to qualify for a mortgage and want a home inspection completed. Most homebuyers also need to have a title check done and negotiate with the seller if they provide a counter offer. It’s also usually necessary to obtain homeowners insurance. If you’re buying a house in Ludlow, Massachusetts, here's why you’ll want to shop around for a home insurance policy before your closing date.

Make Sure You Have Homeowners Insurance in Place Before You Close on a House in Ludlow, MA

Most Mortgage Providers Require Homeowners Insurance

If you’re paying cash for a house, you most likely do not (technically) have to have homeowners insurance. It’s still a very good idea to make sure that your home is insured though, in case something happens.

Most people, however, can’t afford to pay cash for a home -- and you’ll likely need a home insurance policy if you’re taking out a mortgage on your new house. Mortgage companies typically require homeowners to prove that they’ve purchased a year’s worth of home insurance before they’ll officially provide the mortgage. They have this requirement because the house is collateral for the loan, and they want to make sure their investment will still be protected if something happens to the house.

Thus, if you’re using a mortgage to help pay for a house, you’re probably going to need to have a homeowners policy in place by your closing date. If you don’t, there’s a good chance that your mortgage provider will refuse to provide a loan until you secure the required insurance. This could delay your closing date -- or even jeopardize your purchase of the house.

Shopping Around for a Policy is Easy with a Ludlow Agent

Securing a homeowners policy for a new house isn’t difficult. All you have to do to find a good policy is contact an independent insurance agent who serves the Ludlow area.

Your agent will begin by asking a few simple questions. If you aren’t sure about the answer to a question, your real estate agent should be able to help you find the information you need. They’ll then help you select the coverages, limits and deductibles that you want.

Once an agent has all this information, they’ll compare all of the policies that offer the protections you want. They’ll ensure you get the insurance you need at an affordable price, and they can also help make sure that the policy meets all of your mortgage provider’s requirements.

Contact an Agent Once You’re Under Contract

This entire process for finding a homeowners insurance policy can take just a few minutes, but that isn’t a reason to wait until the day before closing to get insurance coverage. As soon as you have a contract on a home, contact an insurance agent. They can help you find a policy and pay its premium well before the closing date, so you’ll have one less thing to worry about. Most likely, the policy’s effective date can be set to your closing date, so it’ll go into effect on the precise day that you need it.