The insurance checklist for closing
What's required, what's optional, and when each needs to happen.
Insurance is a routine part of closing that becomes an emergency when it's left to the last week. The requirements themselves are usually simple; the timing is what causes trouble.
Here's what's genuinely required versus what's a choice, and roughly when each needs handling.
Required by the lender
Lenders protect their collateral, so homeowners insurance is effectively non-negotiable. Depending on the property and your down payment, other items may be required too.
- Homeowners insurance, with the lender listed appropriately
- Proof of the first premium being paid, usually before closing
- Flood insurance, if the property is in a designated flood zone
- Private mortgage insurance, depending on the loan and down payment
Not required, but worth deciding on
Mortgage protection life insurance is optional. It's easy to confuse with private mortgage insurance because of the names, but they do opposite things: PMI protects the lender if you default, while mortgage protection life insurance pays your family if you die.
You don't have to decide during closing. It's just a natural moment to think about it, because the obligation has never been more concrete.
Timing that keeps things moving
Start homeowners insurance early — two to three weeks out rather than two to three days. Underwriting can raise questions about roof age, prior claims, or the property itself, and those take time to resolve.
Confirm exactly what your lender needs and who it should be sent to. A policy that exists but hasn't reached the right inbox delays a closing just as effectively as no policy at all.
After you've moved in
- Check whether your auto insurer offers a discount for bundling
- Update the address on every other policy you hold
- Review your life insurance — the mortgage is a new obligation
- Store the policy documents somewhere your household can find them
Want this checked for your situation?
General information only. A licensed insurance professional can tell you what actually applies to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state. Quote My Policy LLC is a licensed insurance producer.